Fixed annuities are a popular choice for individuals who want a guaranteed interest rate and a stream of income they can't outlive. With a fixed annuity, the principal investment and a specified interest rate are both guaranteed.
Fixed annuity features
Some of the advantages of fixed annuities include:
- Minimal risk exposure
- A tax deferral on earnings
- Access to your money (Withdrawals made before age 59½ are generally subject to a 10% federal income tax penalty, and a contingent deferred sales charge – CDSC – may apply)
- Death benefits for your beneficiaries
For additional details about fixed annuities, read the 5-minute guide to fixed annuities.