Fixed Annuity

A fixed annuity is a deferred annuity or tax deferred annuity. It works similarly to a certificate of deposit (CD) that you could get at a bank.  There are however key distinctions that need to be addressed.  Here you may get a set rate of return for the deferral perios. You may get a higher rate the first year and lower rates in following years.  Fixed annuities have one major advantage over CD’s – tax deferred growth.  NOTE: This DOES offer protection or guarantee of the principal.