1. 15433 POINTS
    Jason GoldenzweigPRO
    Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
    Fixed annuities can definitely be a great idea for seniors. The set payout creates a known, predictable income stream that helps supplement a senior's other retirement income. They are low-risk and generate a guaranteed interest rate return.

    There are immediate and deferred fixed annuities and they are set up through insurance companies. If you're already at the retirement age, you may want to consider an immediate annuity. If you're in younger years, then a deferred annuity may be more preferable.

    An immediate fixed annuity makes fixed payments starting when the annuity is established that are determined by your age and the size of your annuity (how much money you put into it). A deferred annuity accumulates over time.

    If you would like to look into fixed annuities in further detail and see what interest rates are available in today's market from a number of different carriers, please send me an e-mail via the contact me button next to my name. I have an agent in my office that has a strong background in fixed annuities and can help get your program set up.

    I hope the information is helpful - please feel free to contact me with any other questions as well. Thanks very much.
    Answered on April 2, 2015
  2. 37396 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Fixed annuities are finding increased acceptance among seniors. Guarantees are important to seniors who are concerned with any loss in their investments. The fixed annuity gives safety for the rest of the life of the senior.

    Fixed annuities are being purchased to provide a boost to the income of the senior after they reach an older age. This compensates for inflation. Should death occur before this deferred annuity starts its payments the principle in the annuity would pass to the heirs in accordance with the beneficiary provisions.
    Answered on April 9, 2015
  3. 21750 POINTS
    Jim WinklerPRO
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! They can be, a great investment, depending upon your financial situation. An agent will do what is called a "suitability study" with you to determine whether an annuity is right for you.
    The suitability study is designed to see if the investment in an annuity is a safe investment for you to make - is it financially safe, will it meet your retirement needs, and does it fall within the tolerable amount of risk that you are comfortable with.
    Annuities are not very flexible for a period of time when it comes to the money that you invest. There are large fees and penalties, and much damage done to the earnings potential if you need to take back money from your annuity in the first years of the contract. This period is called the "surrender period", and may last as long as 10 years. That makes an annuity something that should be seriously considered only if you have some safeguards in place, and have a good cash flow.
    That said, if it is a suitable investment, then it can be a terrific one to make. Annuities can guarantee an income that you can't outlive, and with our increasing lifespans that is a great thing to have! There are some really good annuity products out there, and the indexed ones have some great earning potential and guarantees. If there are specific questions that you have, feel free to contact me, I'm happy to help. Thanks for asking!
    Answered on April 11, 2015
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