By Matthew Makowski Fixed income annuities offer a low-risk opportunity to guarantee income payments. But there are some pitfalls to be aware of. Here’s a basic rundown of how they work and what to keep an eye out for.
A fixed annuity contract starts with a lump sum payment (or several payments over a period of time) to an annuity provider. This is known as the “accumulation phase.” Once the accumulation phase is complete, the provider agrees to pay a fixed return over a set period of time. This is the distribution phase. And it can take place over a number of years or …read more
