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A fixed annuity can be a valuable addition to your investment portfolio. These tax-deferred investments offer a fixed rate of return while also protecting your initial investment.
Sold by life insurance companies, fixed annuities are contracts issued to people who want safe investments that won’t jeopardize their principal, according to Investopedia.com. Taxes on earnings are deferred until the money is withdrawn or when the contract is annuitized for monthly payments, according to the site.
Fixed annuities are a good fit for buyers looking for tax-advantaged retirement accounts, especially when 401(k) and IRAs are already maxed out, according to goodfinancialcents.com.
Fixed annuities are tax-deferred investments with fixed interest rates that protect the initial investment. Learn more about what Riddleberger offers.