Attractive annuity yields are becoming harder to find
September 3, 2019 by Contributor
As long-term interest rates falter, attractive annuity yields are becoming harder to find.
In the past, some multi-year guarantee annuities offered annual yields upwards of five percent guaranteed over a five-year period. Today, financial advisers are lucky if they find a highly rated insurer yielding over three percent.
Gregory Olsen, partner at Lenox Advisors Inc., says, “There are not a lot of options right now. Insurance companies just can’t support it.”
In July, the Fed cut interest rates for the first time since the financial crisis. They did so to shore up the economy in the face of the U.S.-China trade war and weak growth overseas. On Friday, Federal Reserve Chairman Jerome Powell kept the possibility of further rate cuts on the table.
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