For the first time in awhile, fixed annuities are selling better than variable annuities. It’s no wonder with a financial marketplace that has been less than stable recently. New York Life sells more immediate fixed annuities than anyone; they have seen an 80% increase in those sales from first quarter 2008 to 2009. Even more amazing than that is MetLife’s deferred fixed annuity sales growth. These sales have increased 12,000% from 2008 to 2009. That is almost unbelievable.
So why the increases? It’s fairly simple. These annuities offer guaranteed payouts of 5% (deferred) and 8% (immediate). That’s better than CD’s and Treasuries. Fixed Annuities also help to preserve your capital and offer reliable income at a time when many other investments have tanked. Most advisors recommend using annuities as the basis of your retirement plan and even combining them with other investments that carry more risk.