Q: I am considering buying a fixed annuity. Just wanted to get your thoughts on this type of investment?
A: Because of the commissions and surrender charges I generally steer clients away from annuities. A fixed annuity is like buying a CD but with much higher penalties for early withdrawal. If you are looking for safe yield you might consider a bond ladder or a short term bond ETF until rates move higher. I hope this helps. If you have any other questions just let me know.