The Relationship Between Interest Rates and Annuities

We’ve been discussing the market and the volatility investors have been experiencing all year long. With this bear market many investors are wondering if they should move to cash because it’s safe. But, with 9.1% inflation rate we need to consider how to balance our portfolio. So, what are some alternatives when it comes to building our income plan?

On the other hand, annuities can be a benefit to many investors, when used properly. However, rising interest rates impact this investment tool. On today’s episode, we’ll break down the relationship between annuities, interest rates, and your retirement plan. 

Article mentioned in today’s show: https://www.thinkadvisor.com/2022/03/17/10-fast-facts-about-interest-rates-and-annuities/

Redefining Wealth® Custom Income Plan: https://redefiningwealth.info/schedule/

Rate, Review and Subscribe to the Podcast:

https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188

How to Connect:

redefiningwealth.info

lswealthmanagement.com

Schedule a Review: https://redefiningwealth.info/schedule/

Timestamps (show notes):

4:37 – What is the purpose of an annuity? 

11:58 – How are carriers repositioning? 

16:36 – Crediting rate distribution 

22:30 – How does the yield curve impact interest rates?

28:04 – How does this impact investors?