To everyone bemoaning the meager returns on certificates of deposit, money market funds and treasuries, and those tired of negative returns on stocks.   Read on. Yields on certificates of deposit are under 2%, for money markets and treasuries, less than one percent. There is no reason to expect rate increases for at least two more years.  The Fed just announced that they will keep rates low for an extended period.  This is sobering news for savers and those who live on the interest generated from their holdings.

The financial media has been unkind to annuities, declaring them gimmicky and expensive. Yet, little attention has been paid to an old standy, the fixed annuity.  The reason  there is so little to criticize. You can increase your earnings by 100-200% with fixed annuities. You can create ladders, using one, two, three and five year annuities, avoiding any traps created by increasing interest rates.

Safety of principal and interest is provided by a combination of a state guaranty fund and stringent reserve requirements imposed by the departments of insurance. No annuity hold has ever lost value in a fixed annuity.

Liquidity is good, as interest can be withdrawn as earned, and contracts provide penalty free withdrawal rights of 10-15% per year. Tax deferral is an added benefit. You can leave funds on deposit as long as you wish and will pay no income tax until you make withdrawals.

Annuities are not subject to probate, avoiding expense and delay in settling an estate. Annuities are protected from the claims of creditors and are one of the primary tools in an asset protection program for professionals who face the threat of liability exposure.

If you need more income, or if you need to enhance your asset accumulation, you need to look at good old fashioned fixed annuities from strong, financially sound carriers.   We are happy to help with a list of the best products and the best insurers. Contact us anadolna@associatesgroupinc.com