With annual reset?

Just sat through a seminar, where of course things always sound too good to be true, but I wasn't aware of this option (mostly because my 401k provider Fidelity doesn't offer it).

Guaranteed not to dip below your annual starting balance, and finishes each year within a few bucks of the S&P 500?

What am I missing, other than it being locked up for whatever period you select?

Believe you mean "indexed" not "income". Biggest problems other than surrender periods are
1) counter party risk (huge factor)
2) cap rate/participation rates usually only guaranteed for the next year
3) upfront cost, if commission based
4) return pattern highly dependent on anniversary date, a luck of the draw matter.

Casey TableTennis said:

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Believe you mean "indexed" not "income". Biggest problems other than surrender periods are
1) counter party risk (huge factor)
2) cap rate/participation rates usually only guaranteed for the next year
3) upfront cost, if commission based
4) return pattern highly dependent on anniversary date, a luck of the draw matter.

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Oops, you're right - "indexed", not "income", thanks.

Can you explain what "counter party risk" is?

If the issuer went bankrupt you are an unsecured creditor. This isn't like owning a mutual fund in a brokerage account. The less healthy the company, the more attractive the annuity, because it has to be to compensate for the risk.