Fixed Annuities Can't Beat the Market—The Math Doesn't Work

Fixed Annuities Can't Beat the Market—The Math Doesn't Work

Fixed annuities cannot match stocks' historical 8–10% annual returns. Insurers back guaranteed rates by buying bonds and pocketing fees. Since 10-year Treasury yields lag long-term equity returns, the arithmetic simply won't allow it. Fixed annuities deliver something different: safety and predictable income for retirement spending, not market substitutes.

Published

Read at another depth