The biggest complaint with Fixed Annuities is the "Surrender Charges". Some of these charges can last as long as 15 years. You can avoid these by choosing a shorter period as they go as low as 5 years. Many Fixed Annuities allow for up to 10% free withdrawls after the first year. This withdrawl might solve the liquidity as well.
The other problem has been the amount of growth of your asset. You might feel left out of high growth market conditions because of "Caps" or "Participation Rates". Your annuity might have a very low cap of the crediting of the current market growth such as 4%. The market could go up 15% to 20% and you could feel left out. You should compare the long term benefit such as the protection when there are market drops and the annuity stays at baseline and you do not lose.
A fixed annuity is a long term place for money with a lot of safety. You should consider the potential protection versus the potential growth of products with more risk.
.JPG){kind=avatar}
The other problem has been the amount of growth of your asset. You might feel left out of high growth market conditions because of "Caps" or "Participation Rates". Your annuity might have a very low cap of the crediting of the current market growth such as 4%. The market could go up 15% to 20% and you could feel left out. You should compare the long term benefit such as the protection when there are market drops and the annuity stays at baseline and you do not lose.
A fixed annuity is a long term place for money with a lot of safety. You should consider the potential protection versus the potential growth of products with more risk.