Who is a fixed indexed annuity right (and not right) for

I see a lot of back-and-forth here about whether FIAs are worth it, and I think the honest answer is that it depends a lot on who’s buying one and why.

From what I’ve gathered, a 3-year FIA tends to fit someone who wants some market-linked growth but can’t stomach losing principal, and who won’t need that money for at least the full term. If you’re a few years out from retirement and want a place to park cash that beats a CD without the full risk of being in the market, it lines up reasonably well.

Where it seems like a poor fit is if you need liquidity, since pulling money early usually means surrender charges. It also doesn’t make much sense if you’re young with a long horizon, because you’d probably come out ahead just staying invested and riding out the volatility.

But I’m curious if people here agree with that split, or if there’s a case I’m missing on either end.

If you want to check out the actual current numbers, this breaks down 3-year FIA rates: https://www.annuity.org/annuities/types/indexed/rates/3-year/