There are two ways to make money by investing in bonds. The first is to hold those bonds until their maturity date and collect interest payments on them. Bond interest is usually paid twice a year It's also vital to know that you can lose money in an indexed annuity, even one with a minimum interest rate guarantee. This can happen if you withdraw money from your annuity early or if you surrender the annuity too soon. Early would be before you turn 59 1/2. If you withdraw money too early, you may be charged a tax penalty. Safety: High. Liquidity: Low. Certificates of deposit combine decent interest rates with guaranteed return of your principal, and they also benefit from FDIC insurance on balances up to $250,000 When you cash out an annuity, the insurance company only pays you the cash surrender value of the annuity. You forfeit any surrender charge. Cashing out your annuity also makes you subject to taxes and penalties. But a 1035 exchange may allow you to transfer the money from your current annuity to another one. .

can fixed income funds lose money