Annuities
Get a Quote on a fixed annuity* that behaves like a bank CD. The interest
rate is guaranteed for every year in which a surrender charge exists. Like a
bank CD, the insurance company guarantees a fixed interest rate for a certain
period of time, such as 5 or 10 years.
This is in contrast to a
traditional fixed annuity where the insurance company "resets" the interest rate
every year on the anniversary of your initial deposit. If you have a long-term
investment horizon, CD Type Fixed Annuities offer guaranteed level interest
rates for the term of the contract period that grow your money
tax-deferred.
All annuities impose surrender charges, usually
decreasing over time to discourage short-term investment this only applies if
you withdraw your money before the end of the contract period.
Fixed
annuities are very similar in risk to CD's. One difference is CD's are FDIC
insured and annuities are backed by the insurance companies that offer them.
Why choose a fixed annuity?
If you are more of a conservative investor, a fixed annuity may appeal to
you. Annuities offer steady, guaranteed growth. Annuities also offer
tax-deferral to help your money grow faster and a lifetime income option to keep
your retirement secure.