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Fixed annuity

By Terry Savage on July 17, 2021 | Chicken Money

I have a cd coming due and I can’t get much better than .60% for 18 months online. What are your thoughts about a fixed annuity for 3 years with an interest
rate of 2.4%. I know my money won’t be Fdic insured but I don’t think the insurance company will go bellyup. To me it seems pretty much like a cd with your money being tied up for a length of time. I’ve always heard to stay away from annuities. What advice can you give me?

Terry Says

Someone is trying to sell you something and get a big fee!!! Some annuities (not fixed) offer an enticing rate for the first year or two — BUT YOU ARE STUCK in them for years, when rates may rise! Then you’ll be sorry. It’s a long story — but stop searching for yield. Stick with bank CDs if you need safety and liquidity.

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