Fixed Annuities

Fixed annuities have proven to be an attractive vehicle for many investors.  These annuities have also been referred to as “CD Type Annuities,” mainly in part because they provide a fixed rate of interest for a fixed period of time.  As a result, an investor in a Fixed Annuity can predetermine what their deposit will be worth at the end of the guaranteed interest rate period, while at the same time knowing that their principal is guaranteed against loss or depreciation from an economic or market type downturn.

Example: John Smith deposits $100,000 in a Fixed Annuity with a guaranteed interest rate of 6% for 5 years. At maturity, Mr. Smith can be assured that his initial $100,000 deposit will be worth $133,824. 

*The above example assumes no withdrawals during the 5-year accumulation phase.  Guarantees are based on the claim paying ability of the respective insurance company.  Premiums in fixed annuities are considered to be conservative investments as they are closely regulated by the state insurance departments.