When chosen properly, annuities can help retirees minimize market volatility and reduce inflation stresses. Certified financial planners share their advice on how to find the right one and avoid pitfalls.
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.
Investors with a focus on retirement may find annuities to be a reprieve from the stock and bond markets that have been crushed as inflation has climbed toward 9%.Annuities have had a bad reputation in years past, partially because they are insurance products and there has been distrust in the sales process. Investors also need to understand the fees and stipulations attached to the products they’re considering for their own retirement path.
The Fed’s rate hike leads to higher rates for fixed annuities and a higher cap rate for fixed-index annuities, said David Stone, chief executive officer at RetireOne, an insurance and annuity firm that works with financial professionals. . “In the last 12-15 years, the rates have been so low people have dismissed annuities,” he said. “This is the first time in a long time annuities have strong rates.
When choosing an annuity, investors should ask themselves two questions: how much and in what method they want to receive money from these products, such as monthly or annually, and how they plan to fund the annuity.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Perspective | 7 ways to lower your credit card debt after the Fed rate hikeThe Federal Reserve interest rate hike will make credit card debt more expensive.
Lire la suite »
Fed Views Stablecoins as a Financial Instablity, Urges Regulators to Step inThe Fed express concern over fiat-backed stablecoins not having sufficient liquid assets backing their issuances.
Lire la suite »
Fed up and fired up: Texas Republicans meet in a climate of mistrust, conspiracy and victimhoodFrom a stolen election to the “sexualization” of children to the liberal talking points spouted by mainstream media, activists at the Texas Republican Convention said they felt besieged.
Lire la suite »
AUD/USD sees hurdle around 0.6950 on advancing hawkish Fed betsThe AUD/USD pair has opened around Friday’s last traded price and is expected to find offers around the critical hurdle of 0.6950. The pair witnessed
Lire la suite »
USD/JPY looks to reclaim 135.60 on Fed-BOJ policy divergence, Japan inflation in focusThe USD/JPY pair is displaying a bullish bias in the early Asian session. The asset is advancing to reclaim its fresh multi-year high at 135.59 on div
Lire la suite »
USD/CAD auctions in balance around 1.3000 ahead of Fed Powell and Canada InflationThe USD/CAD pair is oscillating in a narrow range of 1.2995-1.3015 in the early European session. A mild correction from Friday’s high at 1.3079 is ex
Lire la suite »