Thursday, August 4, 2011

The Truth about Fixed Indexed Annuities ---- Misperceptions vs. Realities

When it comes to annuity products, fixed index annuities (FIAs) have been around for a relatively short period of time. Created in 1996, FIAs are insurance products that offer the opportunity for interest potential while protecting against market risk. However, as with many new ideas, misperceptions abound.

Misperception #1:
FIAs are too complex to understand.

Reality:
Understanding FIAs involves learning some basic terms because interest earnings are calculated in various ways.

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