After Another Bad Year for Bonds, Investors Lose Faith
The Wall Street Journal's recent article puts numbers behind why many advisors use annuities as a bond alternative to provide their clients with income or safety. You can read the article HERE.
As of December 26th, the Bloomberg U.S. Aggregate Index had returned 1.1% YTD. This marks four straight years that it has delivered worse returns than T-bills.
Investors pulled $5.3 billion out of BlackRock's iShares 20+ Year Treasury Bond ETF in December 2024. The largest monthly outflow in the fund's 22-year history.
Cash is yielding north of 4%... a tough bogey to beat.
High interest rates have presented an opportunity to optimize portfolios by incorporating annuities. Read below for an overview of annuities advisors are using as a bond alternative!
Spotlight Client Solution*
8% Distribution Rate at Age 70 (Income)
F&G's Safe Income Advantage continues to top the charts for guaranteed income. A 70 year old can deposit $100k and receive $8,150 of annual income starting immediately.
This cash flow produces a 6.22% IRR at age 90.
Nearly $175k of cash flow over the next 20 years.
A rated insurance company.
Notable Client Solutions*
5.50% Rate for 5 Years (Safety)
Sagicor's guaranteed rate annuity (MYGA) provides a fixed rate of 5.50% compound for 5 years.
Sagicor's team provides excellent service, their product offers 10% liquidity each year starting in the 2nd contract year, and they are an A rated company.
Turn $100k into $10k of Income
North American's Benefit Solutions is the strongest solution for clients who want to receive guaranteed income in 5 years.
$100k deposit at age 60
$10,395 income annually starting at age 65
6.50% IRR at age 90
$270k cash flow over 30 years
A+ rated insurance company
*Rates may be subject to premium banding. Products may not be available in all states. Replacement must be suitable and meet all requirements.