Thanks for your question. Indexed annuities are insurance products that can have high fees with returns that underperform the markets. They usually offer downside protection from losses. Please review your total financial situation with a fee only fiduciary financial planner with a Certified Financial Planner, CFP, accreditation. One of our CKA's may meet these requirements.

If someone called you - or contacted you unsolicited to by say crypto currency or land in Florida - would you fall for it - Bob is right - research carefully - the only good - well actually so-so annuities one should buy would be direct or immediate annuity so you can lock in a fixed stream of income for a small portion of your annual income needs in full retirement that would allow you delay filing for Social Security until age 70 for the higher lifetime earning spouse - and for the majority of the portfolio - it can be invested quite aggressively - say 60-40 or even 70-30 - but that depends upon your risk tolerance. Sound Mind Investing has most of their equity investments completely out of the market until all the current volatility settles down and the possible pending recession has either passed or avoided.

By 60/40 or 70/39 are you referring to did you mean 60 percent in fixed assets and 40 percent higher risk product??

Indexed annuities are products that pay you an interest rate based on the underlying performance of a certain investment index, like the S&P500. In exchange for some downside protection, the insurance company usually caps the returns you can achieve. This is not to be confused with fixed annuities or variable annuities - which are mechanically different. Is your money safe? It all depends on what you mean by safe. (Sorry, it’s not an answer to your question, but it’s true…) Fidelity has a nice piece outlining the basics: https://www.fidelity.com/viewpoints/retirement/considering-indexed-annuities Here is what I will tell you, being a financial advisor who helps clients on a daily basis. These products are usually sold and pushed on people during the height of financial uncertainty (like we are seeing right now). Fear is often used to sell them. Most people want safety, but don’t realize this desire for safety is what will hurt them in the long run. I don’t know what the best solution is for you based on a quick message board post. I can confidently tell you that if you buy the contract, you should know it in and out. Every contract can be different.