Are Fixed Annuities A Good Investment

Fixed annuities operate very similarly to CDs.

Are fixed annuities a good investment. When reviewing retirement options people will ask Are fixed indexed annuities a good investment First it is important to note that this product FIA is not technically an investment. The answer to the question of whether or not an annuity is a good investment for you can be found in your personal investment objectives. Fixed annuities are a good investment for those looking for a safe tax-advantaged way to earn a guaranteed return on retirement savings needed in the near future 3 to 10 years.

If you are buying it for that reason an annuity can be a good investment. And yes a fixed annuity does offer a return on investment but is it maximizing your investment dollars. However there are potential cons for you to keep in mind.

As for the stock market return question that one is trickier. Ad Get What Are Annuity. A fixed annuity involves a stable interest rate.

Instead it is an insurance product that allows you to have potential gains. If you like the idea of a regular income in retirement but also the flexibility to change your mind later a fixed term annuity could be a good option. So the short answer is that Fixed Index Annuities can be a good investment if you fully understand the benefits and limitations of the contract and if its fit properly within a portfolio.

And your objectives will be largely influenced by your age and time horizon for investing your risk-tolerance your lifestyle and a number of other factors. Get Instant Quality Info at iZito Now. Therefore you get a guaranteed income.

For some people an annuity is a good option because it can provide regular payments tax benefits and a potential death benefit. In addition to the advantages and disadvantages above below are some helpful guidelines to help you decide if a fixed index annuity may be a good investment for you. That means you could gain a lot with a fixed annuity if the.