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fixed annuities

Forbes Magazine – Guaranteed Returns

Published: June 09, 2003 Categories: Fixed Annuities, In the News

Check out this article from Forbes Magazine titled, “Guaranteed Returns” by Carrie Coolidge. In the piece, is referenced as a Source for the included annuity rate chart.

Here are a few selections from the article for your review.

Looking to lock in a guaranteed rate that beats CDs? Fixed-rate CD-like deferred annuities may be the answer.

CD-like fixed annuities have been around, if little noticed, since the late 1990s. Most brokers and agents lacked much incentive to push them; they could earn more selling other products. Now there’s demand from return-starved investors. CD-like annuities are unlike other fixed annuities because their interest rate is guaranteed for the entire period of the contract, typically between six months and ten years. In that respect they are, as their name suggests, like a CD sold by a bank.

Here’s how these things work: An investor decides how long he can tie up some of his capital. The longer that is, the higher the interest rate credited for the period (see table). As with a CD, only one payment is made, called a single premium. At the end of the period the annuity holder has 30 days to roll over the principal and earnings into a new annuity, or cash out and receive a lump sum.

Unlike variable annuities, the CD-like annuities are no-load products that don’t have annual management fees or expense charges.

To see the rate table where is referenced as a Source, go here:

To read the entire article, go here: