This is a pretty balanced, educational article!
January 24, 2023 by Sheryl J. Moore
I was reading Bradley Rosen‘s article in Kiplinger this morning, and thought “this is a pretty balanced, educational article!” I should share it. Click HERE to read Long-Term Investments Require a New Approach
Warning: there is kind of an awkward plug for indexed annuities at the end. I wondered why the article didn’t mention other types of annuities. I was all, “What about fixed annuities?!? There are some crediting upward of 6.00% right now!”
That said, I am guessing this was omitted because Bradley was trying to highlight products that can keep-up with inflation, but still protect principal. That is likely why he mentioned the living benefit rider with a rollup as well.
SN: You don’t need need a living benefit rider to get “guaranteed income for life.” The article doesn’t say that, but it doesn’t NOT say it either.
The most interesting part of the article for me? Learning that “the S&P 500 historically averaged a 12.1% return (from 1957-1999) [when the 60/40 model was developed]. Since 2000, the S&P 500 has averaged a 6.3% return.” -sjm
