Fixed Annuities vs. CDs

You've worked your whole life to save money for retirement and beyond.  If your money is just sitting in a bank CD, and you are paying taxes on money that you aren't even using - It's time to call a Carpenter! We can help your money work for you with fixed annuities that will provide you with:

• Competitive Growth: Rates of return that may be higher than traditional bank CDs.

• Tax Efficiency: Tax-deferred growth, meaning you only pay taxes when you choose to use the money.

• Confidence: The security of adding a guaranteed* income stream to your retirement plan.

Every financial strategy should be tailored to your specific needs. To see how we evaluate fixed annuities as part of your broader retirement and income strategy, explore our financial services process.

*Guarantees are based on the claims paying ability of the issuer. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. There is a surrender charge imposed generally during the first 5 to 7 years or during the rate guarantee period.

CDs are FDIC-insured (typically up to $250,000). Fixed annuities are not FDIC-insured; they are backed solely by the issuing insurance company's financial strength. Taxation: Fixed annuity earnings are tax-deferred, meaning taxes are not paid until withdrawal. CD interest is taxable in the year it is earned. Liquidity and Penalties: CDs generally offer more liquidity. Annuities often have longer surrender charge periods. Rate Structure: Fixed annuities often offer higher rates than CDs, but the interest rate may adjust after an initial guaranteed period.