Fixed indexed annuities are one of the more misunderstood products in retirement planning, mostly because the crediting formula behind them isn't always explained clearly. You're told your growth is "linked to the market," but you don't actually invest in the market, and the amount you earn is shaped by terms that aren't always defined up front. Here's what's actually happening under the hood.

"Annuity" isn't one product. It's a category, and the differences between the three main types are big enough that lumping them together does you a disservice. Fixed, fixed indexed, and variable annuities handle risk, growth, and guarantees in completely different ways. Understanding those differences is the only way to know which one, if any, belongs in your retirement plan.