What is Indexed Annuities?
Indexed annuities link interest to the performance of a financial index, like the S&P 500, offering potential for higher returns than fixed annuities. They provide a minimum interest rate and preserve principle, but gains could be capped or subject to participation rates. Tax-deferred growth is a benefit of index-indexed annuities, however, there may be surrender charges and periods. An indexed annuity should only be considered after carefully reading the terms and speaking with a financial counselor.
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