Fed easing clobbers fixed annuities
April 29, 2020 by Editorial Staff
But sales of registered index-linked annuities (RILAs, aka ‘structured variable annuities’) posted a record high. RILAs offer more upside potential but less downside protection than fixed indexed annuities.
Fixed annuities of all kinds were collateral damage of the Fed’s interest-rate easing move in March, as the central bank responded to the COVID-19 related crash in prices of stocks and bonds by lowering its target overnight rate to between zero and 0.25%.
Originally Posted at Retirement Income Journal on April 22, 2020 by Editorial Staff.
Categories: Industry Articles
