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How are fixed indexed annuities different from variable annuities?

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How are fixed indexed annuities different from variable annuities?

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Fixed indexed annuities are significantly different than variable annuities. Fixed indexed annuities include minimum guarantees that are intended for more conservative investors who are seeking returns that have the potential to outperform traditional fixed annuities or investment vehicles. However variable annuities are suited more for aggressive investors who are willing to take the risk in potentially losing principal in order to achieve greater gains.

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