Are Fixed Annuities a Good Investment?

Nov 14, 2022

Blueprint Income Team

Fixed annuities are a good investment for those looking for a safe, tax-advantaged way to earn a guaranteed return on retirement savings needed in the near future (3 to 10 years).

Fixed annuities operate very similarly to CDs. Both vehicles offer a safe way to save money, crediting higher interest rates than those available through savings accounts by requiring you to lock your money away for a period of time. Liquidity exists, but withdrawing funds prior to maturity is typically subject to some kind of penalty (unless you purchase a product that allows for free withdrawals). Typically, fixed annuities offer better rates than CDs, but they don’t come with the FDIC insurance that CDs offer. Instead, pay attention to the credit rating of the insurer as a measure of their claims-paying ability.

To get fixed annuity rates, you can view our online marketplace here.

If you’re interested in reading more, here are several articles on fixed annuities.

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Blueprint Income Team

We are a team of finance, insurance, and actuarial professionals working to make it easier for everyone to achieve a steady and comfortable retirement. We write about annuities (the good and the bad) and provide strategies to help Americans prepare for retirement.