Some Pros and Cons of Fixed Annuities

Summary


Q. I recently sold my home and now rent. I put the proceeds of the sale into the bank at 2 percent interest. I am a widowed senior citizen and need income to supplement Social Security. I am beyond taking risks with my money.

This is my problem: I could leave the money in the bank making a meager 2 percent, or I could take out a fixed annuity. What are the advantages and disadvantages I should consider before making a choice? - K.R., Hillsdale

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Extract


Some Pros and Cons of Fixed Annuities

The type of annuity you are considering is called a single- premium, immediate, fixed annuity. You would invest a stated amo...

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