What Is The Disadvantage Of A Fixed Annuity? 
That is a great question ! While a fixed annuity has a lot of great things going for it , there are a couple of things that you do need to look out for . The first is your liquidity . With any deferred annuity there is a period of time where the money you 've set aside to fund it can not be touched without incurring hefty fees , or damaging your earnings potential . If you suspect that you might need to access that cash at any point , then maybe an annuity might not be the right vehicle for you . The second involves the rate of return that you are promised off the annuity . Will the rate be enough after fees to outpace inflation and provide a return that is comparable to another investment vehicle ? If not , then again this might not be the best investment vehicle . As far as safe investments go , fixed annuities are among the best , but please be sure to really think it over , and work with a trusted adviser before purchasing one . Please make sure that it ia a suitable vehicle for you . I hope that helps , thanks for asking ! 