Fixed Annuity

| Total Words: 342

If you are interested in making your money grow over time, you should know about an investment instrument called fixed annuity. Fixed annuity is an investment option offered by different insurance companies. There are several other variations of annuities like variable annuity and indexed annuity but fixed annuity remains one of the most popular choices for individual investors. Annuity is, essentially, a contract between an investor and insurance company. The insurance company is governed by the state and has to follow certain regulations. There is also a tax deferment component that is governed by the Internal Revenue Code.

So what is the fixed annuity and how does it differ from other types of investment instruments? The fixed annuity is an investment vehicle that allows the investor to receive a stream of payments over the life of the annuity. The main characteristic of the fixed annuity is the fact that that the interest rate that the investor earns over the life of the annuity is fixed. This can be considered as an advantage or disadvantage depending on the situation and current economic conditions. One of the main reasons why fixed annuity is used is to provide...

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