re: Phone call with Fidelity rep

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Idk what everyone is talking about.

High quality single premium deferred annuities pay higher rates than CDs with slightly more risk. In an IRA they’re very straight forward. For example, you can get 5.25% for 5 years and then cash out the account back into your IRA.

While you can annuitize them, you don’t have to do so. They’re not perfect, but they’re a tool works for low risk profiles.

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Yes, you are right. I was only thinking of the types of annuities that pay out annually over a lifetime or specified period. I frequently see them justified like my example above.

Sometimes a different type of annuity with a different payout might be of benefit to someone. You can get a 5.25 % rate with either CD's or moneymarket, but securing it for five years might be of value even though these rates are likely to continue and go higher.

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High quality single premium deferred annuities pay higher rates than CDs with slightly more risk. In an IRA they’re very straight forward. For example, you can get 5.25% for 5 years and then cash out the account back into your IRA. While you can annuitize them, you don’t have to do so. They’re not perfect, but they’re a tool works for low risk profiles.

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my thing with annuities is what happens when shot hits the fan for the insurance company and they can’t make their bets (products). Those contracts are massive and it scares me that a technicality could just ruin the whole deal you initially signed up for.