Who Buys Fixed Annuities?

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   Jim Winkler

   CEO/Owner, Winkler Financial Group, Houston, Texas

   That is a great question! One of the biggest considerations in selling annuities is the clients aversion to risk. Some people are gamblers by nature, and have a high tolerance for risk. Some are not so tolerant, but are willing to take some chances, if they feel the odds are good, and have a more moderate risk tolerance. Some people are not tolerant at all. They want to know that their investment is ironclad, and know exactly what it will return. Fixed annuities are ideal vehicles for this type of person. There is little risk, and the returns are defined clearly. They are regularly purchased in plans that need to deliver clearly defined returns for that same reason. I hope that helps, thanks for asking!

   Answered on September 3, 2014

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