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Guaranteed rates of return for fixed annuities: Fixed annuities pose little financial risk because your interest rate is locked in, meaning you are guaranteed a payment during the payout phase.
But annuities have several pros and cons to consider before investing your retirement funds there. How an annuity works When you purchase an annuity , you hand over a lump sum of money or a series ...
Here’s what you need to know about fixed annuities, their drawbacks and who should consider buying them.
Many annuity companies have relatively low minimum premiums, often as low as $2,500 to $5,000 for some types of fixed annuities and around $10,000 to $15,000 for variable annuities.
Annuities are not a good investment for everyone, but there are pros and cons you may want to explore with a financial advisor who understands your goals and current portfolio.
Pros. Cons. Can provide money management assistance in retirement. Higher fees and commissions than other financial products or investments come with annuities.
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