Is a Fixed Annuity a Better Alternative to Bonds? – Episode 163
Today’s topic is a follow-up to a similar discussion we had on this podcast in late 2022. Back then, interest rates had risen as bond values (and stock values) took a nosedive. The question at the time was: where should you go for your “non-volatile” asset class, if bonds don’t seem as attractive?
Now that interest rates have somewhat stabilized, but remain higher than they were for the previous 12-plus years, the same question needs to be asked, but with a twist: Are higher-interest bonds more attractive than what you might get from a CD-like fixed annuity?
As with most everything, the answer depends on a few factors – important points that you need to take into consideration. Find out what you need to know from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on today’s episode of Managing Your Financial Future!
Important Information:
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.
It is important to keep in mind that investments in fixed income products are subject to liquidity risk, interest rate risk, financial risk, inflation risk and special tax liabilities. Interest may be subject to the alternative minimum tax.
Annuities are long-term investment products designed for retirement purposes. Guarantees are based on the claims-paying ability of the issuer subject to their terms and conditions. Annuities are not FDIC insured. Certain terms and conditions apply, so please read insurance company materials carefully.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
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