Sometimes, it’s better to have a low guaranteed return than it is to take a big risk that might pay off (or might not). That’s the approach more people are taking amid tariffs and geopolitical tensions.
Fixed index annuities offer guaranteed returns for their investors. The baseline interest is different for each annuity, but fixed index annuities have the potential to deliver higher returns based on how the market performs. These financial products use a specific market index when calculating total returns.
Just because an investment is getting more popular doesn’t mean you should put your capital into it. Fixed index annuities can work well for some people, but it’s best to know key details about these products while assessing your financial goals and risk tolerance.
This post originally appeared at U.S. News & World Report.