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A very misleading title, as only one paragraph (the 11th) out of 13 even mentions annuities.
Better would have been the subtitle: "Silicon Valley financial advisor Jennifer Ellison counters a low-return, low-yield world with strategies that promise to offer her clients steady, long-term growth."
Obviously in a low interest environment, it is not a good strategy to lock in low fixed returns for many years. Not good whether you buy long term CDs, 30 year Treasuries, or fixed immediate annuities (which lock in the low rate forever).
But fixed deferred annuities may be slightly better than CDs, as they tend to offer higher (albeit still low) rates, and like CDs, give you access once the term is up. (Though depending upon age and other factors, could be subject to tax penalties.)
So even in the long term fixed income universe, buying an annuity is probably not the worst thing you could do, though it comes close
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Better would have been the subtitle: "Silicon Valley financial advisor Jennifer Ellison counters a low-return, low-yield world with strategies that promise to offer her clients steady, long-term growth."
Obviously in a low interest environment, it is not a good strategy to lock in low fixed returns for many years. Not good whether you buy long term CDs, 30 year Treasuries, or fixed immediate annuities (which lock in the low rate forever).
But fixed deferred annuities may be slightly better than CDs, as they tend to offer higher (albeit still low) rates, and like CDs, give you access once the term is up. (Though depending upon age and other factors, could be subject to tax penalties.)
So even in the long term fixed income universe, buying an annuity is probably not the worst thing you could do, though it comes close