Why Hanging on to Your Older Fixed Annuity is a Solid Bet (InvestmentNews)

In a stroke of good fortune, clients who decided to hold on to three-, five- and seven-year fixed annuities are benefiting from attractive yields, making the products a standout among fixed-income investments. “Older fixed annuities that have passed beyond their surrender periods are highly liquid, possess a high level of safety and are paying around 3%, which is often the policy minimum,” said James Heitman, founder of Compass Financial Planning. Getting a comparable return on Treasurys would require investors to consider longer-term securities, he added.