Multi-Year Guarantee Annuities

Do You Like Fixed Annuities But Don’t Like Short-Term Rates? Fixed annuities can be popular among seniors. They are easy to buy, you know exactly how long you must tie up your money, and the IRS will let you defer the income tax on the earnings.  But one point that may have stopped you from investing in an annuity is that some traditional fixed annuities do not lock in the interest rate for the duration of the contract. This means that after the initial period, which is typically one year, the return that the annuity company pays could possibly go higher or lower each year thereafter. However, there is a type of annuity that fixes the return for the entire contract’s term. This way you will know exactly how much you’ll earn while you own the contract.  CD-annuities (also known as multi-year annuities) provide level interest rates for the entire term so you won’t get any surprise notices during this time. You select the term, which generally ranges from three to 10 years when you make the investment. At the end of the term, you will usually have a 30-day window to withdraw all or part of your money, or [...]

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