What Are Fixed Index Annuities, and How Do They Work?

The best part about fixed index annuities: protection from downside risk. And the closer you get to retirement, the more you want protection if the markets have another bad year.

A retired couple sit on the side of a dock on a lake and watch the sun set.
(Image credit: Getty Images)

Annuities are financial products that some advisers intensely criticize and others highly recommend. But the big question is, are they right for you?

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Tim Schultz, NSSA®
Founder and President, Preservation Retirement Services

After losing both his mother to breast cancer and a significant amount of money that she left him, Tim became a Licensed Financial Professional to help people never feel as helpless as he did. As the Founder of Preservation Retirement Services, one of his joys in life is spending one-on-one time with clients to help them create safe retirement income strategies and preserve the money they worked so hard to earn.