Tips When Buying a Fixed Annuity
Jan 18, 2023
Blueprint Income Team
The answers to important questions when buying a fixed annuity.
- Know all your available options before buying a fixed annuity
- Make sure that a fixed annuity is right for your financial situation
- Compare fixed annuities from different insurance companies with Blueprint Income’s online marketplace
Buying a fixed annuity is easier when you’re equipped with the right information. In addition to being available to help walk you through the process, Blueprint Income has compiled a list of things to keep in mind:
1. Buying A Fixed Annuity: The Different Ways
MYGAs are sold via insurance agents, brokers, and financial advisors. Blueprint Income is registered with insurance companies in all 50 states and can help you with finding the fixed annuity with the best return at the credit rating you’re comfortable with. View fixed annuity rates, compare products, and enroll online here.
2. Focus On Interest Rate & Credit Rating
Fixed annuities are largely uniform from carrier to carrier, meaning you can make your decision based on just two things: the interest rate being offered and the insurer’s credit rating. An insurer’s credit rating measures their financial strength and ability to meet future obligations.
3. Laddering Strategy
Just like with CDs, you can use a laddering strategy by buying multiple fixed annuities with staggered terms, i.e. 3-, 4-, 5- and 6-year terms. Because their terms end at different dates, the hope is that you’ll be able to take advantage of an upswing in interest rates.
4. Don't Be Scared Of Market Value Adjustments
If you know you’ll be able to keep your money invested for the full fixed annuity term, consider a market value adjusted (MVA) fixed annuity. You’ll likely get a better rate and will only be penalized if you surrender early (which you've decided you’re not going to do!).
5. Your Plans At Maturity Might Change What You Buy Today
What are you going to do with your money when your fixed annuity term ends? You could roll it over into a new annuity, annuitize it, or withdraw it. Plan ahead so that you can anticipate the taxes you’ll owe under each scenario. And, if annuitization is a possibility, you may do better by buying a longevity annuity today instead.
How Can I Buy a Fixed Annuity?
At Blueprint Income, we offer fixed annuities from more than 30 top rated insurance companies. Click below to get real-time personalized quotes.
From there, you’ll get access to our annuity guides and team of specialists to help you through the application process.
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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.