The Complicated Risks and Rewards of Indexed Annuities

This is Part Five in a Six Part series on annuities. Part One, an Introduction to Annuities, can be found here .
Indexed annuities, also known as fixed-indexed annuities or equity-indexed annuities, have surged in popularity in recent years because of the way they incorporate features beyond those found in conventional fixed annuities.
Similar to fixed annuities, those who buy indexed annuities are often guaranteed returns. But, unique to indexed annuities, a portion of those returns may vary because they are linked to a specific market index, such as the S&P 500. As a result, the return on…

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