Financial Planning AnnuitiesWhat Is Fixed Annuity

I'm financial advisor, Patrick Munro, today
talking to you about fixed annuities. Fixed annuities are a great investment for folks
to consider investing in, because you have the power of triple compounding. Really, you're
able to put money away and it begins to compound; therefore, you're making money on your own
money. Because it's in an annuity, you don't have to pay taxes on the internal rate of
growth, so you get another layer of growth inside the annuity; that it's not worn down
by the fact that you have to pay taxes on it.

A fixed annuity is a better product than
a variable annuity, which we'll talk about later in this series, because it is not tied
to the ups and downs of the market. You'll always know that you've got a fixed rate of
return, so hopefully, if you bought the annuity from a professional, they'll give you a better
rate of return than is available for the cost of living and inflation, which is a big concern
amongst savers. So fixed annuities are backed by insurance companies. You only want to work
with A rated or better insurance companies for your fixed annuity, and make sure that
you buy from a licensed professional that will help you make this very valuable choice
in going forward for your financial future.

I'm financial planner, Patrick Munro, telling
you about the benefits of fixed annuities..