Best Fixed Annuity Rates For December 2019
December 9, 2019 by Matt Carey
As 2019 draws to a close, top fixed annuity rates remain attractive relative to similar investments. When I describe fixed annuities, I’m talking about an annuity that has a preset rate of return for a preset period of time with the ability to liquidate the product at the end of the guarantee period without incurring surrender charges. In some cases, these products go by the name fixed rate annuities and, most precisely, they’re referred to as multi-year guaranteed annuities (or MYGAs). Below, I describe how top fixed annuity yields compare to similar (not the same, but similar) investments, discuss market dynamics in the fixed annuity market over the past year, and then provide details on who the current top providers are. This is based on products available in any state. Not every product is available in every state or at the rate shown here.
A Note about Similar Investments
Fixed annuities are not FDIC insured (like CDs), nor are they backed by the full faith and credit of the United States (like Treasuries). But they are similar to CDs and Treasuries in that, in the past, the overwhelming majority of fixed annuities have done exactly what they said they were going to do — paid a preset rate for a preset period of time — no more and no less. Fixed annuities purchased with non-qualified funds also provide the additional benefit of tax-deferred growth for as long as the funds stay in an annuity (be it the original annuity or another, so long as the new annuity is purchased in compliance with the rules of a 1035 exchange). One consideration, however, for buyers of fixed annuities that will mature before the purchaser turn 59½ is that the interest earned will incur a 10% fee on earnings if funds are withdrawn before reaching that age.
With that as background, let’s take a look at how current fixed annuity rates, Treasury yields and CDs compare.
Click HERE to read the full story via Forbes.
