What is a fixed or fixed-indexed annuity?
A fixed or fixed-indexed annuity is an insurance contract — not a bank deposit, not a security. A fixed annuity credits a set interest rate for a period; a fixed-indexed annuity credits interest tied to a market index, but your money is not invested in the market. Both are insurance products.
A fixed or fixed-indexed annuity is an insurance contract that can help provide income in retirement. It is an insurance product — not a security and not a bank deposit. Here’s how the two types work, and the trade-offs to understand, explained plainly.
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How a fixed annuity works
A fixed annuity credits a set interest rate for a defined period. In exchange, you typically agree to leave the money in place for a term; withdrawing early can trigger surrender charges.
How a fixed-indexed annuity works
A fixed-indexed annuity credits interest based on the movement of a market index. Importantly, your principal is not invested directly in the market. Because of that structure, the interest you can earn is limited by features such as caps and participation rates, and it is not a market return. A fixed-indexed annuity is an insurance product, not a market investment.
Trade-offs to understand
- Limited interest. Caps and participation rates limit how much interest is credited — you do not receive the full movement of the index.
- Surrender charges. Withdrawing more than the allowed amount during the surrender period can reduce what you receive.
- Insurer backing. Any guarantees depend on the issuing insurance company’s claims-paying ability.
- Not a bank product. Annuities are not FDIC-insured, not bank-guaranteed, and not deposits.
Is an annuity right for you?
It depends on your goals, time horizon, and overall retirement plan — there is no single right answer. Under California's best-interest standard, we review your situation and recommend only what fits. We explain the trade-offs honestly so you can decide. A consultation is the starting point, not a quote.
That depends on your goals, your time horizon, and the rest of your retirement plan. Under California’s best-interest standard, our job is to understand your situation and recommend only what is suitable for you — with no pressure and no “act now.” We explain the trade-offs so you can decide.
Common questions
Are annuities insured by the FDIC?
No. Annuities are insurance products, not bank deposits. They are not FDIC-insured and not bank-guaranteed. Any guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
Do you offer variable annuities?
No. We offer fixed and fixed-indexed annuities only. Variable annuities are securities and are outside what we provide.
What is the difference between a fixed and a fixed-indexed annuity?
A fixed annuity credits a set interest rate for a period. A fixed-indexed annuity credits interest based on the movement of a market index, but your money is not invested directly in the market, and the interest is limited by features such as caps and participation rates. It is an insurance product, not a market investment.
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