It’s time to start preparing for the future.

When it comes to searching through the various investment products and securities out there, it’s important to have a firm understanding of the pros and cons of each. While many brokers want to get you into the product that pays the most fees, and thus makes them more money, you owe it to yourself to do the homework and make the right decision for your financial situation and goals.

Tactical Wealth is here to help. Here, in the first part of our three-part series, we are going to outline the pros and cons of one of the most common fixed income investments, annuities, compared to the pros and cons of another, less risky investment known as a CD.

There’s more to understanding annuities than you may think. That’s why we want to highlight the differences between multiple investments, as well as educate you on our own fixed income investment, known as the Fixed Income Fund, which offers significant annuity-like advantages without the fees or hassles.

Keep reading to learn everything you need to know about fixed annuities vs. CDs and contact the folks at Tactical Wealth to get the peace of mind you deserve today.

Similarities Between Annuities And CDs

Fixed annuities are popular income investments for retirees and aggressive investors alike, largely because they provide consistent income at fixed intervals.

One of the similarities between annuities and CDs, otherwise known as bank certificates of deposits, is that they are both low-risk and can be customized to fit different schedules.

Like annuities, CDs pay out a certain amount of income over time at a previously agreed upon interval, and with a fixed rate that never fluctuates.

But other than the fact that both products are set to grow with low interest rates, the similarities aren’t all that striking for investors.

So how do you decide which one is right for you? Here are a few of the pros and cons of each.

Fixed Annuities

Understanding annuities all starts with understanding exactly where your money is going.

When you make an investment in a fixed annuity, you are essentially making an investment in a particular insurance company. As a result, the insurance company pays you back over time, with interest, at intervals that were set out in your terms.

The best part about fixed annuities is that you can always count on the same amount of income every time, whether it’s a monthly, quarterly, or yearly payment.

Another advantage that fixed annuities offer is that your money grows on a tax-deferred basis.

Some of the drawbacks of fixed annuities include early withdrawal penalties, low interest rates, and fees charged by the insurance company or broker that sold the annuity.


CDs, or certificates of deposit, are sold by banks to investors and grow the principal with interest over time. Unlike annuities, however, CDs pay out only once, typically after a duration of 5, 10, or 20 years.

There are early withdrawal penalties for investments in CDs, though investors can rest assured knowing that even if the bank from which they bought their CD fails, the FDIC will insure their investment up to $25,000.

CDs are a long-term, low-risk, yet low-reward investment.

Fixed Income Fund

Looking for a way to get stable, consistent income monthly at a higher rate than those offered by annuities and CDs? Then you need the Fixed Income Fund. Download your free report today and stay tuned for part two on our series about understanding annuities.