What is a Fixed Annuity?
Fixed annuities allow you to lock in a rate of earning that, even over long periods of time, remains unaffected by market ups and downs. The principal investment and a specified interest rate are both guaranteed.

Who Might Consider It?
This may be a good choice for those who want a guaranteed interest rate without market participation. It’s a minimal investment risk, but still offers a chance to grow money at a set interest rate.
What are the benefits?
Tax-deferred: It’s tax-deferred status allows you to benefit from compounded growth.
Principal and interest protection: it offers minimal investment risk exposure but still provides the opportunity to grow money at a set interest rate. The rates are generally higher than CDs from a bank.
No Market Risk: It offers guaranteed interest rates without exposure to market fluctuations.
Flexibility: If choosing to annuitize your contract for lifetime income, you have the ability to choose from different payout options: set payments for a specified period or a lifetime stream of income.
Lower Investment Minimums: They usually require only $1,000 to $10,000
Beneficiary Protection: You can pass assets to beneficiaries and avoid costly probate process. Optional riders at an additional cost can enhance the amount that beneficiaries may receive upon the annuity owner’s passing.
What should you consider before purchasing?
Less opportunity for growth: Without market participation, growth opportunity is minimal compared with variable annuities, but there’s also less risk.
Inconsistent rate: Some rates can be offered for a fixed period and then drop after that set period of time.
Interest may not keep up with inflation: If this happens, you could lose buying power.