An index annuity is the best way to make sure that the money that you have saved in your Cd's, money market accounts, and IRA accounts etc. is protected. It is also looked at as an alternative for the money that you presently have invested in things like stocks and mutual funds. Getting an indexed annuity can really improve your earnings potential while you keep your principal safe from any fluctuations in the market. When you get an index annuity, your return is attached to the increase in one of many different stock market indexes for example; the S&P 500. However, if the stock market goes down, it ensures that you will not loose any money. Actually; most index annuity contracts actually guarantee you will recover at least a minimum annual return of around 1-3% even in the event that the index you invested in goes down for the whole duration of the time that you are invested. Investing in an index annuity offers you the potential of higher returns without forcing your principal to the many risks that you will face in the stock market. As part of the no risk guarantee that you will get from the index annuity, you should also know that policy holders usually have to be willing to give up some of your upside market potential. This is on of the reasons why the new index annuity products are so attractive to retired people and the many people who are nearing retirement. Basically, in exchange for having the retirement assets completely protected from any losses, an index annuity owner is obliged to share in market gains but can not receive a full 100% on the increase. If you are an investor who has seen the constant market fluctuations, this is a really valuable compromise. An index annuity is definitely on of the best options out there right now for those people who do not want to take any of the downside risks that generally go along with investing. If this sounds like you in any way, you will be happier and better off in investing in an index annuity than in any other venture. Nobody wants to loose a great deal of money when they invest because the whole purpose of investing in the first place is to gain money or hold on to the monies that you want to save and you certainly do not want to see it disappear. If you are interested in making a sure fire investment that is guaranteed to give you a return and none of the risk, indexed annuities are a great way to go about it. Before you attempt to get into this or any type of investment you should consult a reputable and reliable company and broker to help along your journey. All it takes is a little bit of time on the internet and in phone books and a nice selection of questions in order to locate the best company in your area that you feel comfortable with. With the internet and right questions, you can get started into the index annuity market right away. Just make sure that you look before you leap, and thoroughly research your offers.