Finding high yield safe investments is the ideal scenario for most investors. Unfortunately, this is extremely difficult.

After all, most high yield opportunities also carry with them the high chance of serious loss. After all, if there was a guaranteed way to get an ten percent return without taking any risks, everyone would be rich.

For the most part, the only truly safe investments are the government bonds and CODs. Unfortunately, these will only offer you around a 2-3% gain. However, if you are determined to find something a little better that does not have as much risk, you might want to look into a fixed annuity with a respected financial firm.

In particular, insurance companies are a good choice. These annuities are great because they tax deferred. If you find a good company, you can possibly get around a five percent return.

Just be sure you have chosen a good company. They must have a proven record of financial profitability. Otherwise, there is a high chance they will default on your payment.

For this reason, you want to intensively analyze their track record. Focus on companies that have been profitable for at least ten years in a row, and show increased profitability each year.

Of course, the overall profitability of fixed annuities is still relatively limited. For this reason, you might want to take the time to educate yourself on other forms of investment, like stocks, forex futures, real estate, etc.

Quite simply, while the risk is higher, so is the reward. At most, you can make five percent with a fixed annuity.

However, with other investments you can earn twenty percent or higher, in some instances. Very few people get rich from high yield safe investments, and you probably will not either. They should be used to hold your money between investments, but probably would not make a great long term choice.

One of the most common uses for a fixed annuity is in retirement planning.  Even though the fixed annuity comes with warning signs (particularly on the internet), it can be a powerful addition to any comprehensive retirement plan.

Simply stated, a fixed annuity is an insurance product that makes a fixed payment for a specific period of time.  Many contracts can be established as a life annuity, and provide guaranteed income for the duration of the annuitant’s life.

Fixed annuities often get a bad rap on the internet.  The primary reason for this is that the sale of annuities has been frequently abused by overzealous and greedy insurance agents.  Traditionally, the commissions on a fixed annuity contract are higher than traditional life insurance or other insurance products.  As such, the incentive for agents to oversell the annuity has become rather prevalent.

The best way to protect yourself for this type of situation is to fully understand and agree with the intent of the annuity contract before your purchase it.  It should have a clear and designed purpose, and should not be intended for temporary residence of your retirement funds.

A properly designed retirement plan that uses annuity contracts will have a clear cut purpose and focus.  The deferred fixed annuity can provide a secure and guaranteed income for the lifetime of the retiree.  Though the ability to pull money out of the account earlier than intended is difficult, if the retirement plan is comprehensive, the need shouldn’t arise.

Because of the guaranteed payments and the stability of the insurance industry, the fixed annuity contract is one of the lower risk investments you can make.  The last thing that you want to do with your hard-earned retirement income is risk it away in dangerous and aggressive investments.  Protecting your principal is the name of the game during retirement.