What Are The Risks Of A Fixed Annuity? 
That is a great question ! I 'm pleased to hear you ask it , as it is really important to understand the risks of investing before you make that investment . The good thing about a fixed annuity is that you know exactly what your return will be . The risk lies in what if that interest rate you will receive does not keep up with inflation over the life of the annuity ? Inflation is best described in the amount of rising costs you pay for everyday things . If your annuity pays 1 % , but the price of milk and gas goes up 3 % , yes , you will have an increase of 1 % in your annuity value , but it will only pay for 98 % of what it would buy today . You would in effect be losing 2 cents on every dollar you put into the annuity . It is important to work with a good advisor , who can help you find an annuity that will give you a rate that is sufficient , or that provides built in adjustments . If you need help , please feel free to drop me a line , okay ? I 'm happy to help . Thanks for asking ! 