Fixed Annuities

Fixed Annuities

Fixed annuities are a popular financial product that can provide a steady, predictable stream of income during retirement. Here are some reasons why people may choose to buy fixed annuities:

1. Guaranteed income: Fixed annuities provide a guaranteed income stream that is not affected by market volatility or interest rate fluctuations. This can provide peace of mind for retirees who want to ensure a stable source of income throughout their retirement years.

2. Tax-deferred growth: The money invested in a fixed annuity grows tax-deferred, meaning taxes are not due on the earnings until they are withdrawn. This can be advantageous for individuals who are in a higher tax bracket during their working years but expect to be in a lower tax bracket during retirement.

3. No minimum investment: Fixed annuities can be purchased with a relatively small amount of money, making them accessible to a wide range of investors.

4. Flexibility: Fixed annuities offer a variety of payout options, including a lump sum payment, regular monthly payments, or a combination of both. Some annuities also offer the option to withdraw a portion of the principal without penalty.

5. Protection from creditors: In many states, fixed annuities are protected from creditors, which can provide an additional layer of security for investors.

It's important to note that fixed annuities may not be suitable for everyone, and it's important to carefully consider the terms and conditions of any annuity before making a purchase. It's also a good idea to consult with a financial advisor to determine if an annuity is a good fit for your overall retirement plan.

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