1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That 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, 2014
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The 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 principal
    Answered on March 11, 2015
  3. 1976 POINTS
    Ronald Hinch
    Regional 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, 2016
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