Guaranteed Lifetime Income With Fixed Indexed Annuities

A Fixed Indexed Annuity is a contract with an insurance carrier that protects your principal while crediting interest based on the performance of a market index such as the S&P 500 — subject to a cap, participation rate, or spread. You are not invested directly in the market, so your contract value doesn't fall when the index has a down year.

You won't lose principal or previously credited interest because of market downturns — that's the role of the 0% floor. The main things to understand are surrender charges if you withdraw more than the penalty-free amount during the surrender period, and any optional rider fees. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance carrier, and we explain every detail before you decide.

In a year the index falls, you simply earn 0% for that period instead of taking a loss — your balance stays where it is. When the index rises again, your contract is credited interest up to its cap or participation rate.

In exchange for protection from market losses, your upside is limited by the cap, participation rate, or spread, and your money is meant to stay in the contract through the surrender-charge period. They're built for long-term, protected growth and income — not short-term trading. We'll walk through whether that fits your goals.

Growth is tax-deferred, so you aren't taxed until you take withdrawals. Funding the annuity with a direct rollover from a TSP, IRA, or 401(k) can preserve that tax deferral. Withdrawals are taxed as ordinary income, and amounts taken before age 59½ may be subject to an additional IRS penalty.

A traditional fixed annuity pays a set, declared interest rate. A Fixed Indexed Annuity instead ties your interest to a market index, so your credited return can be higher in strong index years — while the 0% floor still protects you in down years.