Fixed annuities provide a guaranteed and steady income stream for a specified period or for life, making it a reliable retirement planning tool. It's also low risk compared to variable or indexed annuities because your principal and a minimum rate of interest are both guaranteed by the insurance company.

although fixed annuities offer a guaranteed rate of return, this rate is generally relatively low compared to other investments, which could limit your overall earnings potential, especially during periods of high inflation.

Its primary advantage is the potential for higher earnings linked to the performance of a stock market index, like the S&P 500, providing more opportunity for growth than traditional fixed annuities. Despite this link to the stock market, your principal is protected, so you won't lose your initial investment if the market performs poorly. This provides a balance of growth potential with downside protection.

Even though fixed indexed annuities are linked to a stock market index, the returns are often subject to caps and participation rates. These products can be more complex than fixed annuities.