Fixed Annuities

What is a fixed annuity?

Usually this type of annuities works as certificates of deposit (CD) issued by insurance companies. Like CDs, fixed annuities pay guaranteed rates of interest, usually higher than average bank CDs. Fixed annuities will be deferred when they accumulate rates of...

What are its advantages?

The biggest advantaged of fixed annuities is that they pay guaranteed rates of interest that will be tax free until you withdraw it and offer low investment minimums -$1,000 to $10,000. These qualities make fixed annuities an appealing option to investors that want an...

What are its disadvantages?

Despite its benefits, there are a few disadvantages to consider. The fixed annuities rates can be fixed for a determined period and then drop when this period ends. If you don’t like the new rates and decide to take your money out you probably will have to pay...

How do I know if buying one is right for me?

Fixed annuities are usually the best option for those who want to be sure that their money will be enough to pay their expenses during their retirement years. If you are concern about having enough money, a fixed annuity could be a good way to forget those concerns...

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