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.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.