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Fixed Annuity
A fixed annuity also called a a period-certain annuity, is a financial contract where a life insurance company pays an interest rate for a specific period at the time the annuity is purchased. Essentially, you are converting a lump sum of money into an income stream. Also your fixed annuity payment will not change, even to account for inflation. Many find this stability a security feature and prefer fixed annuities over variable annuities. Moreover, fixed annuities limit the investor's risk by providing a guaranteed return. It is said that fixed annuities are most appropriate for those of you that have a low tolerance for risk or for those who are looking for a guaranteed return and want to know exactly how much they will be receiving. Additionally, fixed annuities do allow you some access to your investment; you can typically choose to withdraw interest or up to 10% of the principal annually. Your fixed annuity may also have a range of hardship clauses that allow you to withdraw needed funds.  

Fixed Annuity   Variable Annuity
Immediate Annuity   Deferred Annuity
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