How Do Indexed Annuities Compare to Fixed and Variable Annuities?

Introduction: “Annuities can get confusing, especially with so many types. Here, we’ll focus on how indexed annuities stack up against fixed and variable annuities so you can see which might suit you best.”

Main Sections:

• Fixed Annuities: “Fixed annuities are predictable, providing guaranteed returns that don’t change with the market. Great for stability but with limited growth.”
• Variable Annuities: “Variable annuities give you higher growth potential by investing directly in the market but come with higher risk. Ideal for those comfortable with market ups and downs.”
• Indexed Annuities: “Indexed annuities fall between these two. They offer the safety of fixed annuities with the growth potential of variable annuities but without direct exposure to market losses.”
• Comparison Table: Summarize the differences in risk, growth potential, and suitability in a simple table format.
• Example Scenario: “Consider a couple, Lisa and Tom. Lisa is conservative and leans toward a fixed annuity, while Tom likes market growth. They settle on an indexed annuity as a compromise, so they get some growth but no losses.”

Conclusion: “Each annuity type has its advantages, so it comes down to balancing your growth goals and risk tolerance. Let’s talk if you want help finding the right fit for your needs.”