Ride the Resurgent Annuity Wave to Supplement Retirement Income

In the ever-changing landscape of financial instruments, annuities have regained their significance as an income tool, as a result of the recent dramatic rise of interest rates from all-time lows of 1–2% to their current 4–5% returns for six-month CDs and 5–6% passbook saving rates.

Today’s annuities can provide a guaranteed rate of return based on a stated fixed interest rate, or a rate of return based on the appreciation of the value of the stock, bond market, as well as indexes or sub-accounts geared to replicate the stock market funds and exchange-traded funds (ETFs). There are now also several ...