Is a fixed-rate annuity a wise investment choice? It all depends on your goals! Brian talks through when someone might choose to use this financial tool.

To some, a fixed rate annuity is sounding like a good idea. When the money in your bank account isn’t earning any interest, fixed-rate annuities carry some appeal. Certificates of deposit used to be a popular tool for conservative savings, but now people are looking at other ways to invest conservatively.

Brian talks about what some of your options are, considering what you would earn and what kind of taxes you should anticipate. What is your risk tolerance? More than that, what are your goals? Keep in mind though, inflation is outpacing many of these more conservative investment tools.

The word “annuity” scares some, but it’s all about understanding what it is. With any investment you’re giving up something to gain something else. With an investment in a fixed annuity or CD, you give up the upside if the market takes off but you’re gaining safety. There are a lot of options, but make sure to consider the pros and cons to everything you do.

Listen to the entire episode or skip ahead using the timestamps below.

0:12 – Is a fixed-rate annuity a good idea?

6:31 – How does inflation impact this decision?


Any investment, you’re giving up something to gain something else.

-Brian Bowen