What Is Wrong With Fixed Annuities? 
The biggest complaint with Fixed Annuities is the `` Surrender Charges '' . Some of these charges can last as long as 15 years . You can avoid these by choosing a shorter period as they go as low as 5 years . Many Fixed Annuities allow for up to 10 % free withdrawls after the first year . This withdrawl might solve the liquidity as well . The other problem has been the amount of growth of your asset . You might feel left out of high growth market conditions because of `` Caps '' or `` Participation Rates '' . Your annuity might have a very low cap of the crediting of the current market growth such as 4 % . The market could go up 15 % to 20 % and you could feel left out . You should compare the long term benefit such as the protection when there are market drops and the annuity stays at baseline and you do not lose . A fixed annuity is a long term place for money with a lot of safety . You should consider the potential protection versus the potential growth of products with more risk . 