What Are the Benefits of a Fixed Annuity?

Wendy-Swanson-13-What are the benefits of a fixed annuity

In this video, Wendy Swanson highlights the benefits of fixed annuities, emphasizing their guaranteed interest rates, predictable returns, and often higher yields compared to traditional bank CDs.
Video Transcript

People that enjoy fixed annuities enjoy guarantees. I call this the bird in the hand approach, if you will, because you will know exactly the interest rate that you're going to make every single year. You're going to have contracts that have only two years where they have that guarantee all the way out to 10 years and every number in between. So, for instance, right now and I won't name any companies here, but for a five year multiyear guarantee annuity, you could get a rate guaranteed each and every year right now for 2.8.

If I go down to a lower year, let's say three years, it's going to be less than that. You're giving that insurance company less time, so they're going to give you less in interest rates. So that'd probably be in about the 2.3 range.

So, you know, the perfect client for somebody like this is somebody who's just gone to the bank. They were offered a half on a five year CD. They're not real happy. You know, we can give them something that is substantially better in the interest rate category, as well as the further taxes on those gains within their contract.