What Are the Pros and Cons of a Fixed Annuity?

Juliette Fairley - What are the pros and cons of a fixed annuity?

In this video, Juliette Fairley explains that a fixed annuity offers a stable, predictable interest rate—providing security—but the downside is that it doesn’t benefit from higher market returns, limiting potential growth.
Video Transcript
The pros and cons of a fixed annuity, the pro is that its interest rate is fixed, so it's not going to go up or down. So you have a pretty steady return reward. The downside of that steady return or reward is that it doesn't go any higher. So let's say if the market goes high or outperforms, you're not going to get the benefit of that. But you do get the benefit of a stable, maybe smaller return in exchange for the stability of getting something.