January 2017 Fixed Annuity Report

One of our New Year’s resolutions is to make it easier for you to decide when (if at all) is the right time to buy an income annuity. While the decision is partly rooted in your personal finances and circumstances, we recognized that we could be doing more to help you understand the market.

Starting today and continuing monthly, we’ll be sharing a brand new Annuity Intelligence Report. It’s a quick, one-page update on the income annuity market, rates and trends. Click here or on the picture to see it.

Abaris Annuity Intelligence Report January 9, 2017

Market Update

Bond yields continued to go up in early December, which has caused annuity payouts to go up again. Based on the fact that yields have declined over the last couple weeks, we expect annuity payouts will more likely than not decline or stay the same when carriers next update their models. It varies from insurer to insurer, but there’s typically a couple weeks to as much as a month of lag between when bond prices change and when they’re reflected in annuity pricing.

All this is a long way of saying — if you’re looking to buy soon, we view now as a good time to do it.

The Trade-Offs of Fixed Indexed Annuities

Fixed Indexed Annuities are a hot topic at Blueprint Income and all over the retirement finance blogosphere. They’re popular today for a few reasons: (1) they offer grandiose promises of being an all-in-one solution and (2) they pay agents/brokers significantly higher commissions than income annuities.

But we don’t sell them. Why? Because they don’t ever make financial sense or belong in an optimized retirement portfolio.

To understand why the FIA pitch of market upside with no downside risk and guaranteed lifetime income is too good to be true, read our new whitepaper “FIAs & DIAs: Understanding the Difference.” Click here or on the picture to get the report.

Blueprint Income comparing fixed indexed annuities FIAs and deferred income annuities DIAs

 

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