3 Benefits of a Fixed Deferred Annuity

If you are thinking about purchasing a fixed deferred annuity, there are several things that you will want to consider. Here are some of the benefits that you can receive by investing in a fixed deferred annuity.

1. Fixed Interest Rate

One of the major benefits that you will receive is a fixed interest rate. This interest rate will be the same regardless of what takes place in the market. By comparison, other types of annuities can have a variable interest rate that moves up and down. This type of interest rate provides you with some consistency in your investment.

2. Guaranteed Payments

Once you retire, you will be able to start receiving guaranteed payments. You will be able to receive a fixed payment every month for the rest of your life if you choose a lifetime annuity. Having a steady source of income during your retirement years can be very beneficial.

3. Professional Management

With this type of annuity, you will be able to benefit from professional money management. Once you invest your money with the insurance company, a professional money manager is going to take care of the investments for you. This is a great tool to use for those that wish to have a "hands off" way to invest.

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