Annuities Have Long Gotten a Bad Rap. Retirement Experts Now Say Savers Should Consider Basic Options for Guaranteed Income.
July 22, 2020 by Neal Templin
Financial planners long have counseled retirement savers to keep a blend of bonds and stocks in their portfolios. The bonds kick off income and the stocks provide growth.
That advice now looks in need of a refresh. Bond yields have been bumping around historical lows for around a decade. And stocks provided strong growth during the longest bull market in U.S. history, which ended earlier this year. Stocks have rebounded so strongly since then that they’re now expensive again, and due for a period of below-average returns. This has left retirees with some tough portfolio choices at a time when many face an income shortfall.