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A financial advisor with more than three decades of experience, Nick Yekani serves as president of Economics & Family, Inc., in Woodland Hills, California. Throughout his career, Nick Yekani has become well-versed in a variety of financial products, including fixed index annuities.
Offering a guaranteed rate of interest and a high degree of safety, a fixed index annuity is a tax-favored savings option offered by insurance companies. In recent years, the popularity of these products has grown significantly, leading to record-setting sales numbers.
The reason that many investors are attracted to fixed income annuities is that they offer guaranteed growth. Unlike variable annuities, the principal on fixed annuities will not decline when the stock market does. Instead, the principal fluctuates according to a formula based on the change in the value of a stock market index, typically the Standard & Poor's 500.
Other benefits of fixed income annuities include tax-deferred earnings, principal protection during market downturns, and higher interest rates than bank CDs and other annuities. FIAs can also be an attractive option for those looking to create a probate-free inheritance or retire early without penalty.
Offering a guaranteed rate of interest and a high degree of safety, a fixed index annuity is a tax-favored savings option offered by insurance companies. In recent years, the popularity of these products has grown significantly, leading to record-setting sales numbers.
The reason that many investors are attracted to fixed income annuities is that they offer guaranteed growth. Unlike variable annuities, the principal on fixed annuities will not decline when the stock market does. Instead, the principal fluctuates according to a formula based on the change in the value of a stock market index, typically the Standard & Poor's 500.
Other benefits of fixed income annuities include tax-deferred earnings, principal protection during market downturns, and higher interest rates than bank CDs and other annuities. FIAs can also be an attractive option for those looking to create a probate-free inheritance or retire early without penalty.
