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what are investment of a fixed annuity asset

what are investment of a fixed annuity asset
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Answer #1

Solution:

Fixed Annuity Asset:

It is basically a contract with an insurance company wherein the company guaranteed th policyholder to receive a guaranted return i.e. fixed return on their investment.

People who are about to retire or have retired use this product to stabilise their income from investment. People can buy them as lump sum or in a series of payments over time.

The insurers invest the annuity assets into a portfolio of US treasuries or other long term bonds.

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