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Fixed annuities have a guaranteed interest rate for a set time period. So, if interest rates go up and you are locked into a rate you are the loser. But the reverse can also work, if rates are high and rates go down, the annuity has to pay you the rate for the life of the time period. So, either the person or financial group could be the loser depending upon what happens to interest rates.

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15y ago

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How is an annuity payout calculated?

Market value along with a guaranteed death benefit rider if it was written into the contract. If it's a fixed annuity it can be calculated by the predetermined fixed rate.


Should I choose an annuity fixed?

If you would rather have a slower, but more stable growth then annuity fixed is for you. Fixed annuities also offer tax-deferral which increases the speed your money grows.


How is a defined benefit retirement plan different from an annuity plan?

A defined benefit plan is one that your employer pays for over the period of time you are employed with them. An annuity plan is a program that you invest in for your retirement. Both are payable at the time of your retirement. Defined plan is a fixed amount. Annuity depends on the terms of your contract.


How safe is your 403-B annuity with AIG?

How safe is TSA 403 (b) Fixed annuity? Is TSA 403 (b) Fixed annuity insured ?


What is a fixed annuity?

A fixed income annuity is a type of insurance contract where the insurance company makes payments of a preassigned amount to the holder of the annuity, the annuitant.


What is the principal benefit of an annuity?

The principal benefit of an annuity is providing a steady stream of income during retirement.


What is a fixed income annuity?

A fixed income annuity is a type of insurance contract where the insurance company makes payments of a preassigned amount to the holder of the annuity, the annuitant.


How safe and secure is an AIG annuity that pays 4 percent fixed per year?

It is as safe as AIG is. No fixed annuity has ever lost any money, but bottom line, AIG backs the fixed annuity


Will you earn a higher interest rate with a variable annuity than with a fixed annuity?

Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.


Is a variable annuity a good 403B investment?

Fees are higher in a Variable annuity than they are in say a fixed Index Annuity.


Why exactly would one buy an annuity?

One purchases an annuity by depositing money, which guarantees a return of regular, fixed payments for a fixed period of time or one's lifetime. One might purchase an annuity so as to receive a payout that is not subject to income or capital gains taxes.


What are fixed annuities comprised of?

A fixed annuity is an annuity that pays a fixed amount of interest, defined by the terms of the contract. It is comprised of the money that you put in and the interest the insurance company provides in exchange.