Fixed Annuities and Low Interest Rates
Fixed annuities were once very popular among advisors, as were certificates of deposit or CDs. However, because interest rates are so low, they aren’t able to generate a sufficient return. This translates into an inadequate income for life.
Our Fixed Annuities Recommendation
Currently, we are not recommending any fixed annuities because, in our opinion, there are better investment alternatives. However, if you currently own a fixed annuity and are considering taking advantage of a 1035 exchange, you could benefit from exploring some options that currently outperform the US 10-Year Bond.