Josh Bradley of Capital City Financial Partners says fixed annuities are a bit easier to understand than other types of annuities.
He says they’re very similar to a traditional bond or CD.
“Your principal is protected and you’re going to earn a set interest rate for a set term and, when the end of that term happens, you get all your money back,” Bradley said.
In times like we’re currently living with some uncertainty and volatility in the market, Bradley says a fixed annuity might be a good option in financial planning.
“Having some of your money protected principally is a big deal. The second reason why you’d consider it right now is ... especially where interest rates are now, so low ... CD’s, bonds are virtually zero. Most fixed-rate annuities are actually paying more interest for the same term as a bond or CD,” Bradley said.
Bradley says the biggest issue is “locking your money up,” which is true for all annuities.
This article originally appeared on Wis News 10.
