The Fed rate hike makes annuities seem attractive — but know how to pursue them
June 22, 2022 by Alessandra Malito
With the Federal Reserve’s interest-rate hike, annuities may seem like an attractive retirement-income strategy. After all, higher interest rates should mean fatter guaranteed incomes. But there are a few considerations savers must make first.
Click HERE to read the full story via MarketWatch
Wink’s Note: So, you need to understand that MarketWatch is going to seek out sources that are fiduciaries. Take that for what it is worth; it is just who they know.
And as a result, they are going to suggest that people seek out a fiduciary when shopping for annuities. It is important to understand that the vast majority of annuity salespeople are not fiduciaries, however. In fact, a great many fiduciaries would take issue with the suggestion of an annuity because it doesn’t fit within their compensation model, among other things.
So, there is that.
I’m thinking that when David Stone said, “In the last 12-15 years, the rates have been so low people have dismissed annuities,” he meant that the potential for annuity sales could have been greater. Certainly, some types of annuities have achieved record sales over the last 12-15 years. Indexed, variable, and structured annuities specifically come to mind…
Lastly, I don’t think that the advice to “invest no more than 20% to 40% of an overall portfolio into an annuity” is prudent for everyone. Remember that we are creating SOLUTIONS for INDIVIDUALS with UNIQUE concerns. – sjm
