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A fixed annuity gives you a locked-in interest rate, full principal protection, and tax-deferred growth — no market exposure, no guesswork, no surprises.

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Your Savings, Guaranteed — A Fixed Annuity Rate That Doesn't Move With the Market

What a Fixed Annuity Actually Does for Your Retirement Savings

A fixed annuity — sometimes called a multi-year guaranteed annuity, or MYGA — is a contract between you and an insurance carrier. You deposit a lump sum, the carrier locks in a guaranteed interest rate for a set term, and your money grows tax-deferred until you're ready to use it. The rate doesn't fluctuate. The principal doesn't shrink. What you put in is there when the term ends, plus the interest you were promised on day one.

 

For conservative savers who want predictable, safe retirement savings without the volatility of the market, fixed annuities are one of the most straightforward tools available. I work with dozens of top-rated carriers across Oregon and beyond, which means I can shop the current market and find you the most competitive guaranteed rate — not just whatever one company is offering this week.

How a Fixed Annuity Compares to a CD

If your savings are sitting in a bank CD, you already understand the appeal of a guaranteed rate. Fixed annuities work on a similar principle — but with two meaningful advantages.

 

  • Higher guaranteed rates. Fixed annuity rates frequently outpace CD rates from banks and credit unions, sometimes by a full percentage point or more, depending on the term and carrier.
  • Tax-deferred growth. With a CD, you pay taxes on the interest every year whether you withdraw it or not. With a fixed annuity, your interest compounds without being reduced by annual taxes. You only pay when you take distributions — which means more money growing in the meantime.
  • Principal protection. Like a CD, your principal is guaranteed. You will not lose what you put in.
  • Flexible terms. Fixed annuities are available in terms ranging from 3 to 10 years, so you can match the product to your timeline.

 

The difference adds up. I'll run a side-by-side comparison for your specific situation so you can see exactly what the numbers look like before you decide anything.

What Happens to Your Money During the Surrender Period

This is the question I hear most often, and it deserves a straight answer.

 

Fixed annuities have a surrender period — typically 3 to 10 years, depending on the product — during which early withdrawals beyond a set limit may trigger a penalty. That's a real feature of how these products work, and I'll never gloss over it.

 

What most people don't realize is that the majority of fixed annuities allow you to withdraw up to 10% of your account value each year without any surrender charge. So if you need access to a portion of your savings, you're not locked out entirely. The key is choosing a term and product that fits your actual liquidity needs — which is exactly what we work through together before you commit to anything.

 

I'll walk you through the specific withdrawal rules for every product I recommend, in plain language, before you sign anything.

Who Fixed Annuities Work Best For

Fixed annuities aren't the right fit for everyone, but for the right person, they're one of the most effective retirement income tools available. You may be a strong candidate if:

 

  • You have savings in a low-yield CD or savings account and want a better guaranteed rate without taking on market risk
  • You're within 5–10 years of retirement and want to lock in predictable, principal-protected growth
  • You've already funded your 401(k) or IRA and want additional tax-deferred savings
  • You want a portion of your retirement assets to be completely stable, regardless of what the market does
  • You're in Oregon or any of the other states where I'm licensed and want to work with a local advisor who can explain your options without a sales pitch

 

If you're not sure whether a fixed annuity fits your situation, that's exactly what a free consultation is for.

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Fixed Annuity Questions, Answered Plainly

  • Are fixed annuities FDIC insured?

    No — fixed annuities are not FDIC insured, because they are insurance products, not bank deposits. However, they are backed by the financial strength of the issuing insurance carrier and by your state's guaranty association, which provides a layer of protection up to statutory limits if a carrier becomes insolvent. I only recommend carriers with strong financial ratings, which is the first line of protection.

  • How long is a typical surrender period for a fixed annuity?

    Surrender periods typically range from 3 to 10 years, depending on the product and carrier. Shorter terms generally carry lower rates; longer terms often offer higher guaranteed rates in exchange for the extended commitment. Most products allow you to withdraw up to 10% of your account value annually without penalty, even during the surrender period.

  • How does a fixed annuity interest rate compare to a CD?

    Fixed annuity rates are often higher than CD rates for equivalent terms — and because the growth is tax-deferred, the effective advantage compounds over time. A CD credits interest that is taxable each year. A fixed annuity lets that same interest keep compounding without an annual tax drag. I'll run a direct comparison for your situation so the difference is concrete, not theoretical.

  • How does a fixed annuity work for retirement income?

    During the accumulation phase, your money grows at the guaranteed rate. When you're ready to use it, you can take withdrawals, convert the balance to a stream of income payments, or roll it into another product depending on your retirement plan. The right strategy depends on when you'll need the money and how you want it distributed — which we work through together. What is a multi-year guaranteed annuity (MYGA)? A MYGA is simply another name for a fixed annuity with a guaranteed rate locked in for a specific multi-year term — typically 3, 5, 7, or 10 years. The rate is set at the start and does not change during that term, which makes it one of the most predictable savings vehicles available for conservative retirees.

Get in touch

Ready to See What Your Savings Could Earn?

I'll compare current fixed annuity rates from multiple carriers against what your money is earning now, walk you through the terms in plain language, and help you decide whether a fixed annuity belongs in your retirement plan. There's no pressure and no obligation — just a clear picture of your options.