Using a Fixed Annuity for Fixed Income
Last year was a tough year for fixed income investors. Most major bond indexes finished lower. Going forward, finding opportunities for value in today’s bond market isn’t easy. Valuations are soaring and persistently low bond yields can drive investors to chase yield – looking for income in risky places. That may not end well.
So, what should you do with your bond portfolio? Dump bonds altogether and go to cash? Cash is low yielding, and the interest is taxable. CDs? Not a fan. Interest on CDs is taxable, plus you lock into a low interest rate today, just when yields may be rising this year. There are other solutions, like building a , buying bonds to join our 2022 Asset Allocation Webinar – Where do we go from here? Where to invest?, on Feb 25.)But one solution that has a few interesting advantages is a fixed annuity. Here’s what I mean:
