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What are the benefits of a fixed annuity?

A fixed annuity shares many of the same benefits with annuities as a whole, but it also offers benefits that are specific to fixed annuities. These advantages include: Tax-deferred gains – Like all annuities, a fixed annuity can allow you to build wealth in a tax-deferred account.

Are fixed annuities safe?

Many financial professionals consider fixed annuities to be the safest type of annuity. It’s a straightforward concept: Depending on the amount of your contributions, an annuity company promises you a guaranteed minimum return. You can predict how much your annuity balance will grow over time.

How are fixed annuities used in retirement planning?

Fixed annuities are often used in retirement planning . Fixed annuities are insurance contracts that pay a guaranteed rate of interest on the account owner's contributions, whereas variable annuities pay a rate that varies according to the account owner's chosen investments.

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