Fixed Annuity
A fixed annuity provides a guaranteed rate of interest during the accumulation period and a guaranteed (“fixed”) amount of income when the contract is annuitized. With a fixed annuity, the insurance company is responsible for investing the premium payments and therefore assumes investment risk. The insurance company is obligated to provide guaranteed annuity payments regardless of whether their investments have generated an adequate rate of return. With a fixed annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a fixed or guaranteed rate, and; 3) payments are at a fixed rate and can begin immediately or at some future date.
An Interview with Retirement Planning Expert Henry Hebeler
Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning...
Ordinary Investors Can Outsource their Hedging and Derivatives Management through Annuities
Concerned about the possibility of another market swoon?
Take a look at some of the...