Fixed index annuity

Your thoughts on fixed index annuity.

Terry Says:  I’ve written about all these products many times — and at length in The Savage Truth on Money.  But I’m not sure what you’re talking about when you say “fixed index annuity.”   If you’re talking about an “indexed” annuity, you are talking about a variable tax-deferred annuity, with growth rates indexed to some activity of the stock market.  Typically these are a ripoff — because you don’t get the full return of the stock market index, including dividends.  More discussion on that in my book.