In our most recent blogs, we have been discussing annuities and how they can be a reliable source of income for your retirement years. Hopefully, now you are 
somewhat familiar with annuities and how they work. If you have been keeping up with our blogs, you are also probably familiar with some of the different types of annuities available. While it’s great to have options when it comes to planning for retirement, it can be difficult to determine which option best meets your needs. It is important to become educated about the different annuity options available and understand their different advantages and disadvantages.
A fixed annuity is a popular annuity option. Fixed annuities offer the following benefits:
Safety- Investing in a fixed annuity is a safe, conservative way to steadily grow your money. Fixed annuities are even safer than bonds because a bond’s price can fluctuate depending on interest rate levels.
Predictable- Fixed annuities are very predictable and stable. The annual interest rate does not change and you will always be able to determine the exact worth of your investment. As long as you do not make any withdrawals, you can be completely prepared for the result.
Tax Deferral- Much like a 401(k), fixed annuities are tax-deferred. This means that you will earn interest each year on your investment, but you will not pay any taxes on the interest that you earn. This is an obvious advantage because your money will grow faster than it would if Uncle Sam were getting a cut of that interest.
These are just a few of the benefits of investing in a fixed annuity. If you have any questions regarding fixed annuities or if you would like to find out if they are the right choice for you, contact our team of annuity specialists today. We are annuity experts and we will do everything we can to help you make the most educated decision possible.