Fixed Indexed vs Fixed Annuity
Learn the differences between Fixed Indexed Annuities and Fixed Annuities to make an informed decision for your retirement planning.
Comparison Table
| Feature | Fixed Indexed Annuity | Fixed Annuity |
|---|---|---|
| Growth Potential | Linked to market index (with cap/floor) | Guaranteed fixed interest rate |
| Risk | Limited downside risk | No market risk |
| Liquidity | Limited withdrawals, surrender charges may apply | Limited withdrawals, surrender charges may apply |
| Tax Treatment | Tax-deferred growth | Tax-deferred growth |
Pros & Cons
Fixed Indexed Annuity
- Potential for higher returns
- Protects against market losses
- Complex crediting methods
Fixed Annuity
- Simple and predictable
- Guaranteed interest rate
- Lower growth potential
