Retirees looking to grow their nest egg safely have limited options. Investing directly in the stock market can result in the greatest gains – but also exposes your hard-earned money to risk. Lower risk savings products such as CDs and savings accounts do protect your money, but the interest rates are, in many cases, less than impressive. How can you earn the highest interest rates possible while protecting the money that you need for the future? Retirees are discovering that a fixed index annuity might be the best way to achieve greater returns with guaranteed safety.

A fixed index annuity allows individuals to enjoy stock market like gains without any of the risk. The annuity’s interest returns are coupled to a particular index, such as the S&P 500. When the market does well, the fixed index annuity does well. If the market should fall, the annuity still earns a guaranteed minimum interest rate. Crediting methods are calculated in many different ways – the most common being the point-to-point method. With this method, the interest is calculated by taking a snapshot of where the index stands on the contract anniversary date and comparing that starting point to another snapshot taken 12 months later. The percentage change between the two dates is used to calculate the annuity’s interest return, generally with some limiting factor applied.

A fixed index annuity’s premium and credited interest earnings are completely guaranteed by the issuing insurance company; an individual can NEVER end up with less than he or she started with, assuming no withdrawals are taken and the policy is held to maturity. This is welcome news to those who worry about losing a significant portion of their nest egg due to market exposure.

To speak with an Annuity Specialist regarding a fixed index annuity, call 1-800-994-3023. BuyAnnuitiesOnline.com offers web-based resources designed to educate consumers on the different types of fixed index annuities. To learn more about the benefits of a fixed index annuity, please visit http://www.buyannuitiesonline.com.