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Location: NC
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Annuity Trends
I've been to immediateannuities.com many times for reference, but I never noticed their Annuity Trends - Interest Rate Trends page. I stumbled on this while replying to another thread a few days ago.
Lots of good charts, mostly showing clearly why now is an historically bad time to buy an annuity (or take a pension with an equivalent lump sum) if you have other options. Note the historically poor payouts & yields (left & right axes). Just one chart below...
When interest rates/bond yields improve eventually, immediate annuities will be more viable. If you bought an annuity or took a pension from 2003-2009 you did far better (congrats). Those conditions will come again one day...
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While I think the overall conclusion is still solid, I note that the payout is for a period certain annuity rather than a life contingent annuity. I suspect a life contingent line would have a similar slope.
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As discussed in other threads here, I have also noticed the downward trend, hence my decision in 2012 to start buying deferred annuities. Only time will tell whose approach was better.
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Originally Posted by Midpack
I've been to immediateannuities.com many times for reference, but I never noticed their Annuity Trends - Interest Rate Trends page. I stumbled on this while replying to another thread a few days ago.
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__________________ Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
As discussed in other threads here, I have also noticed the downward trend, hence my decision in 2012 to start buying deferred annuities. Only time will tell whose approach was better.
Just out of curiosity - did you go through a broker? Have you found any websites to give quotes on deferred annuities like the ones you have?
I've tried searching the net for deferred annuities for quotes just to see what they're like, and all I can find are references to the traditional fixed-rate "deferred" annuity (like a CD).
No. I followed the advice given on this website about those companies with the most financial strength. Then I did some online research and only at that stage I called three of them. When I compared the three quotes given to me, only one them clearly stood out.
Quote:
Originally Posted by MooreBonds
Just out of curiosity - did you go through a broker? Have you found any websites to give quotes on deferred annuities like the ones you have?
I've tried searching the net for deferred annuities for quotes just to see what they're like, and all I can find are references to the traditional fixed-rate "deferred" annuity (like a CD).
__________________ Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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