Fixed annuities offer a low risk investment option with a very reliable and steady income. Unfortunately, when dealing with investments, low risk typically means a lower rate of return, which is absolutely true of fixed annuities. However, the draw of a guaranteed income is enough to make a fixed annuity part of many peoples' retirement portfolios.Advantages of a Fixed AnnuityA unique feature of fixed annuities is principal protection. While other investments carry the risk that you will lose some of the money that you put in, fixed annuities provide the guarantee that you will get back any funds that you invested, regardless of the current market.Another advantage of fixed annuities is inflation protection. Annuities are designed to provide income starting at the time of retirement and co