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A fixed index annuity is a type of insurance product that offers a potential for growth based on market performance while protecting your principal investment. An annuity is a contract between you and an insurance company that provides a series of payments over a period of time. Fixed index annuities work by tracking the performance of a market index, such as the S&P 500, while limiting your potential losses. They offer a guaranteed minimum interest rate and tax-deferred growth.

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