Sophia: Maggie, I’m curious about indexed annuities. How do they work?

Maggie: Great question, Sophia! An indexed annuity offers returns that are tied to a stock market index, like the S&P 500. Your returns depend on the performance of that index, but there’s usually a cap on how much you can earn.

Sophia: Does that mean my money is invested in the stock market?

Maggie: Not directly. Your money isn’t actually invested in the stock market. Instead, the insurance company credits your account based on the index’s performance. This allows for potential growth while protecting your principal from market losses.

Sophia: So, there’s less risk than variable annuities?

Maggie: Yes, there’s typically less risk because you have a guaranteed minimum return, but there’s also a cap on the maximum return. If you’re interested in balancing growth potential with some level of protection, we can explore indexed annuities further. Let’s schedule a time to discuss your options.

—-

#Annuities#VariableAnnuities#FixedAnnuities#ImmediateAnnuities#IndexedAnnuities#RetirementPlanning#FinancialSecurity#FreeConsult