What unique characteristic do fixed annuities offer investors?

Fixed annuities are designed to provide a guaranteed return on investment, which is a fundamental characteristic that appeals to many investors seeking stability and predictability in their financial planning. With fixed annuities, the issuing insurance company guarantees that the investor will receive a specified interest rate over a predetermined period. This unique feature provides a sense of security as investors know exactly how much interest they will earn, which is particularly valuable in volatile financial markets where investment returns can fluctuate significantly.

The guarantee of interest rates in fixed annuities contrasts with other investment options that may come with risks and variable returns, making fixed annuities a reliable choice for those looking for a steady income stream during retirement or for capital preservation. Furthermore, since fixed annuities are often used as long-term savings vehicles, the certainty of guaranteed interest can help investors meet their long-term financial goals without exposure to market risk.

In summary, the defining characteristic that draws investors to fixed annuities is the assurance of guaranteed interest rates, offering a reliable and predictable income stream.