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Fixed Annuities
Fixed annuities are characterized by a minimum interest
rate guaranteed by the issuing insurance company. Typically, a minimum
annuity benefit is also guaranteed. With a fixed annuity, the focus is on
safety of principal and stable investment returns. The fixed-rate annuity is
very similar to a bank CD, but typically pays a higher minimum interest rate
and offer greater security. You receive this amount no matter if the market
goes down, interest rates decline or the insurer has an unprofitable year.
They are a secure and safe, no-risk investment which makes them popular with
conservative investors and for those who want to pinpoint exact returns on
their investments.
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