Annuities
Fixed-rate annuity
A guaranteed rate above a bank CD, growing your retirement money without market exposure.
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Grow retirement money at a guaranteed rate above a bank CD, without exposure to the market. A fixed-rate annuity locks a rate for a term you choose, commonly three, five or seven years.
The core features
The rate is guaranteed
The agreed rate compounds daily for the whole term whatever the market does. Unlike a bank CD, the guarantee runs for years rather than months.
Tax-deferred growth
A bank deposit is taxed on its interest every year. Here tax waits until you withdraw, so the money that would have gone to tax stays compounding.
Access when you need it
Most contracts allow a penalty-free withdrawal each year, commonly up to 10% or the accumulated interest.
The conditions that matter
- Surrender charges Withdrawing beyond the free allowance before the term ends can trigger a surrender charge. Choosing the right term matters more than chasing the top rate.
- What your family receives A named beneficiary receives the full account value with no surrender charge, and it passes outside probate rather than waiting on the courts.
Annuities
Types of annuities Sorted three ways (when it pays, what it is for, how it invests) the right one becomes obvious.
Immediate annuity Place a lump sum and income can begin the following month, then continue for life.
Buying guide Four steps: settle the goal, compare the carriers, read the conditions, then decide.
Index annuity (FIA) Principal protected when the market falls, index-linked interest when it rises.
Guaranteed income for life The payment continues for life even if the account runs dry. A second Social Security, built for you.