All Gain with no Pain? What You Need to Know About Indexed Annuities

The annuity industry must have studied the story of Goldilocks and the Three Bears because, after recognizing that investors weren’t very keen on low fixed yields or the vicious volatility of the stock market, they came up with a product, that for most people, would seem to be just right – Indexed Annuities. Often described as a blend of fixed and variable annuity, it really is an asset class unto itself. Essentially, it is a fixed annuity with its yield linked to a stock index, such as the S&P/TSX composite index.

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