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Finding the Best Fixed Annuity

What is an Annuity?

According to Investopedia an annuity is-”essentially a level stream of cash flows for a fixed period of time. Most often used as a form of income during retirement.” It is also similar to bank-issued CDs. Usually a lump sum of cash lock in an interest rate for a certain period of years. The initial deposit can range from $5,000 to 1 million dollars. Annuities are low risk and are more liquid than CDs. They are tax-deferred, and in most cases offer higher yields than CDs, bonds, or money market accounts.

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