Financial markets have their ups and downs, bringing about uncertainty. But in prepping for retirement, reliability might be appealing to you. When people talk about stable financial products, you may hear: What is a fixed annuity? A fixed annuity is a contract with an insurance company that guarantees the principal and provides a guaranteed tax-deferred rate of return over long the life of the contract while remaining unaffected by market ups and downs. Fixed annuity interest rates are generally higher than with traditional savings vehicles and unlike other types of annuities, most fixed annuities don't charge annual fees. Learn more The fixed interest rate and guaranteed minimum payout mean that fixed annuities are generally more reliable than other annuity options and make them a great choice for risk-averse investors. Using a fixed annuity to help build reliable assets for your retirement may give you the confidence you’ll need in this upcoming stage of life, as well as access to income when you need it. Download Our Don't Panic Ebook! With everything going on in the world, keeping perspective is essential as life and markets change. First Name Last Name Email Address Fixed Annuities (FA) are not suitable for all investors. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.