What Would Be Considered A Disadvantage Of Owning A Fixed Annuity? 
That is a great question ! There are two things that could be seen as disadvantages to having a fixed rate annuity . One is inherent in all annuities , and that is the fact that the money is untouchable for several years , without paying penalties to withdraw it . If you change your mind , or feel that it was n't a good investment , it can be difficult to change without taking a hit financially . Annuities are a bad investment vehicle if you have liquidity issues . The second is that if your 're not receiving a rate that will outpace inflation and cover fees , you can actually lose money . If the guaranteed rate say , is 2 % , but the fees are 1 % and inflation is 1.5 % , you are actually losing money . The same could be said if the money invested in the annuity could have brought a higher return invested elsewhere . It 's important to really have a good advisor when looking at annuities , especially fixed ones , to ensure you get the best return possible . Thank you for asking ! 