The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
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 interest, or immediate if make fixed payments in your retirement period, the payed amount will depend on your age and the size of your annuity. This type of annuities is a popular option because it offers a predictable fixed income that will make the retirement planning easier.
However, due to the nature of fixed annuities, there will be advantages and disadvantages that we must consider to know if it would be a good investment