What are the disadvantages of a fixed annuity?

Cons:

  • Limited Returns & Teaser Rates. Although the returns in a fixed annuity are guaranteed, they tend to be very low.
  • Fees, Commissions, and More Fees. All annuity policies have built in fees that cut into your return.
  • Loss of Flexibility.
  • Limited Inflation Protection.
  • Loss of Step Up in Basis.

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