of Fixed Annuities

Exploring the Benefits and Drawbacks 

What Is a Fixed Annuity?

A fixed annuity is a retirement contract offering a predetermined rate of return. It provides a lump sum or monthly income payment upon maturity.

Fixed Annuity Vs Variable Annuity

Fixed annuity: guaranteed return. Variable annuity: market-based returns, higher risk. Choose fixed for guaranteed security.

Who Should Invest in Fixed Annuities?

Fixed annuities provide guaranteed retirement income for risk-averse investors with a minimum investment of $10,000 for 2-10 years. 

Pros of Fixed Annuities 

(Guaranteed returns) 

Fixed annuities offer guaranteed returns, making them an excellent option for risk management as you near retirement age.


Contributing to a fixed annuity defers taxes until withdrawal, benefiting retirees in lower tax brackets, resulting in reduced tax payments 

Cons of Fixed Annuities


Annuities are illiquid due to surrender fees and tax penalties. Only invest money you won't need for years, and avoid early withdrawals.

(Lack of Liquidity)

Fixed annuities offer limited returns but carry less risk and guarantee a set rate of return. Compared to CDs, they usually offer higher rates.


In conclusion, fixed annuities provide stable returns with lower risk compared to variable annuities, making them a reliable investment option.

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