Indexed annuities are a type of financial product that offers both growth potential and protection for your money. They work by crediting you with a return based on an external index, such as the S&P 500, while also providing a minimum guaranteed interest rate. This means that even if the market performs poorly, you will still receive a certain level of return on your investment.
Indexed annuities are typically sold by insurance companies and come with fees and charges associated with them. They can be an attractive option for those who want to participate in market gains but also desire the security of knowing their principal is protected. However, it's important to carefully consider all aspects of these products before making a decision on whether they are right for you.