Fixed Annuities Short Term (1-5 years)
Imagine saving for the future with confidence that your principal is safe and your future income is predictable. Fixed annuities are financial vehicles structured much like a bank CD. Similar to a CD, fixed annuities offer an interest rate over time, but also include tax benefits geared specifically toward retirement savings. Once the initial deposit is made, an interest rate is guaranteed for a specific length of time.
Fixed annuities keep your principal safe and offer more liquidity than CDs. They typically have a higher rate of return than bonds, CDs, or treasuries. Fixed annuities have three primary advantages: Tax Deferral, Principal Protection, and a Guaranteed Rate of Return for a fixed period of time. They will give you conservative growth, typically 2-4%. Unlike most short-term accounts, when referring to a fixed annuity upon death, the beneficiary receives the full value of the account while avoiding probate. A short-term fixed annuity is designed to protect your money with a reasonable rate of return of approximately one to five years. All fixed annuities allow you to withdraw your interest monthly, annually, or remain compounding at a tax-deferred rate.