Who Are Fixed Annuities Best For?

Some of the best fixed annuities can provide you with a very solid investment. However, this type of investment is not for every investor. Here are a few things to consider about whether or not fixed annuities are for you.

Passive Investors

Fixed annuities make a great investment for those that want to utilize passive investment strategies. With a fixed annuity, you will be investing a certain amount of money and you will be guaranteed a regular payment for the rest of your life. You do not have to worry about making individual investment decisions and you can leave that up to someone else. You just pay your money and then you can rest assured that your retirement income will be there when you need it.

Lump Sums

Some individuals receive a large lump sum of money at some point. Whether you get this from a pension plan or some other method, putting the money into a fixed annuity might be a good idea. This way, you can feel safe about where your money is and you know that you will be able to generate a regular monthly income from the money. This can prevent many people from using their lump sum on inappropriate investments.

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