What Is Fixed In A Fixed Annuity?
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is an excellent question! Fixed annuities are the simplest of the three main types of annuities. They are generally the safest in terms of risk, because the fixed rate of return is clearly stated. A fixed annuity will have a guaranteed interest rate that is fixed for a period of years. The other annuities, indexed and variable, will have rates and returns that can change based upon the profit or loss in the marketplace. I hope that helps, thanks for asking!Answered on September 13, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe word “fixed” has to do with the rate of return. The insurance company exchanges a fixed amount of money, paid either in one payment or in periodic payments and agrees to make regular fixed payments for the lifetime of the annuitant starting at a specific date or a date to be selected later. In this case the insurance company assumes the entire risk for both earnings and principalAnswered on March 11, 2015flag this answer
1976 POINTSview profileRonald HinchRegional Marketing Director, Capital Choice Financial Group,A fixed annuity is an insurance product that pays a fixed interest for a specific term which could be 3,5,6, or 10yrs. This is a good place to put safe money that is not needed now but in the future. Besides the higher than bank rates it offers tax deferral. Now, fixed indexed annuities work the same but gets a higher interest rate because the deposit is indexed to the stock market. Here you are participating in some of the market growth but none of it's downside.Answered on April 26, 2016flag this answer
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