Fixed annuities serve as a convenient and predictable lifetime investment for retirement. The
contract a retiree signs for a fixed annuity will allow them the opportunity to gain returns off of
the market, as well as secure their principal, bonuses, and previous years interest when the
market suffers. An retiree can choose to receive declared fixed rates or have varying rates
based off of the performance of the market. They can also lock in rates for different time frames.
These are a conservative investments, much like certificates of deposits, but have guaranteed
returns that can be higher than bank CDs. They also offer low investment minimums, typically
ranging from $1,000­$10,000, and bonuses can be added to their original principal. Lastly, there
is no tax on the interest once the annuity has been redeemed.