My parents asked me what I know about Fixed Indexed Annuities since a family friend is trying to sell them one. I simply invest into total stock market index funds and chill. I know more than they do but I don't know anything about these. I think it's a waste of money since from what I've researched that it is capped and you can't withdraw for 5-10 years from what I've read.
Can you tell me if I'm being too negative on these or should I steer them away from putting their retirement money in there since they plan on retiring in less than 5 years.