An interesting wrinkle: RMDs and Deferred Annuities

Q: Last year I purchased a deferred annuity in my IRA. My insurance company recently sent me a statement reminding me that I need to take a required minimum distribution before year-end. They included the amount of my RMD and I was shocked to discover that it is significantly higher after buying the annuity than it was before the annuity. I called my broker and he assured me the higher RMD was correct. I’ve been paying RMDs for several years, but I have never seen anything like this. What’s going on?
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Take a look at index annuities

Q: I went to a dinner recently hosted by someone who was trying to drum up interest in fixed index annuities. She said these kinds of annuities would allow me to benefit from the stock market’s upside while guaranteeing that I wouldn’t lose money if the market went down. It sounds too good to be true, but the products are offered by some very reputable insurance companies. What can you tell me about them?
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