They Look Like CDs, but They’re Annuities—and Sales Are Booming
December 26, 2024 by Ann Tergesen
Key Points:
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Fixed-rate deferred annuities, offered by insurance companies, are similar to CDs but offer higher yields owing to a broader investment portfolio.
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Sales of fixed-rate deferred annuities have surged, driven by rising interest rates and demand from baby boomers seeking conservative investments.
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These annuities provide tax-deferred earnings and various maturity options, but they lack FDIC protection and might impose surrender charges for early withdrawals.
The highest interest rate on your cash right now might be coming from an insurance company, not a bank.
Wink’s Moore on the Market: A positive article about annuities, from The Wall Street Journal.
Enjoy, and thank you Anne Tergesen! -sjm
Originally Posted at The Wall Street Journal on December 19, 2024 by Ann Tergesen.
Categories: Industry Articles
