What is an Equity Indexed Annuity?

Equity Indexed Annuities, or EIAs are classified as fixed annuities.

The principle behind an EIA is the ability to participate in an equity linked interest rate while avoiding the downside risk associated with the stock market.(EIA interest rates are linked to a market index, but are not invested in them.)

An EIA also has a guaranteed minimum interest rate with an excess interest feature that is linked to a major stock market index.

Why Annuities Belong in your Retirement Plan