re: Fixed Index Annuity – do any of you have experience with them? Update on page 2

I don't understand why they call it an annuity. It's really a structured investment. You are generally buying a product, not a stock or bond investment fund. Think of it is a derivative.

The product invests in bonds and pay a rate (or, the product invests in whatever, but your product is paid interest based on a fictional investment). The interest then buys a side investment - in this case a stock index fund (or, again, it may just mimic one). Generally, there is a cap in how much growth you can get in that side investment in a year. The side investment may or may not "lock-in gains" after a period of time - say annually.

The premise, indeed, is that you won't lose any principal, and you may get some of the gains of the market.

They are pitched on WWL a lot. They have a commercial about how they don't lose "one penny" of the investor's principal.