If you plan to invest your money on a business or asset this New Year, you might want to explore the possibility of buying fixed annuities. There are many instances when investors, especially those who want to avoid risking their investments, buy fixed annuities. They buy these when these offer higher interest rates than CDs. They also buy these when the stock market appears to be volatile. Moreover, they buy these when most of their money has gone into other savings portfolios.
Many investors have also discovered that there are many benefits to be had when they buy fixed annuities. For one, it’s a safe and conservative way to make their money grow. Second, fixed annuities earn interest each year but you don’t have to pay taxes on it. Third, its stable rates make the annual interest rate and worth of your investment very predictable. Fourth, in case you (as the investor) die while owning a fixed annuity, your money will go straight to whomever your beneficiaries are as stated in the contract. The money won’t go through complex processes since it won’t be part of your estate. Finally, you can convert a fixed annuity into a steady income stream upon your retirement.
Of course, you should know other things about fixed annuities. Hence, it would be a good idea if you could spend time to read more about its advantages and disadvantages.