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An indexed annuity (the word equity previously tied to indexed annuities has been removed to help prevent the assumption of stock market investing being present in these products) in the United States is a type of tax-deferred annuity whose credited interest is linked to an equity index—typically the S&P 500 or international index.
Any future income derived from a variable annuity is not fixed and can go up or down based on the mutual fund's performance. This option carries more risk but also higher financial rewards. Equity ...
A deferred annuity that permits allocations to stock or bond funds and for which the account value is not guaranteed to stay above the initial amount invested is called a variable annuity (VA). A new category of deferred annuity, called the fixed indexed annuity (FIA) emerged in 1995 (originally called an Equity-Indexed Annuity). [5]
Indexed annuities are a type of fixed annuity which are regulated and distributed in the same manner as fixed annuities (through licensed insurance agents). Indexed annuities are a conservative safe money place for retirement dollars. [4] Indexed annuities usually provide a purchaser with various options for interest crediting.
Indexed: An indexed annuity offers a rate of return that tracks an index such as the Standard & Poor’s 500 Index, which holds hundreds of America’s largest companies.
Annuities provide tax-deferred retirement income. Learn how they work, the pros and cons, and whether an annuity fits your retirement plan. ... Some indexed annuities might be regulated by the SEC ...
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