In “Advice: Protecting your money” from the Cape Fear Business News, James D. Gidley gives wary investors an alternative to using their mattress as a bank. It is obvious why people are scared of the stock market right now. If you are looking for extra security for your savings, Gidley suggests fixed annuities, money market accounts, and certificates of deposit. Each alternative has its own benefits and pitfalls so speaking to an expert is the best way to find the one that works for you.
Fixed annuities protect your principal from losses and pay you a set amount in interest income over either your lifetime or a predetermined time frame. By searching for the best fixed annuity rates, you have the ability to grow your initial investment. Annuities are not meant to be cashed in so they are long term investments. The taxes are deferred until you receive your monthly payouts, usually in retirement. Unlike money market accounts and certificates of deposit, fixed annuities are not guaranteed by the FDIC so it is wise to use financial strength ratings reports to find a strong insurance company.