Interest Rates Declining: 2023 Recap
Interest rates declining at the end of the year
- Interest rates have dropped significantly at the end of 2023, affecting annuity options.
- Expectations regarding interest rates dropping in 2023,
- My earlier expectations about interest rates for 2023 and I discuss how they evolved over the year.
2023 Recap
- Pensions vs. annuities for retirement income,
- the decision between taking a lump sum from a pension or receiving pension payments and how it relates to annuities.
- Annuity income options with or without fees,
- he impact of fees on annuity income and discusses the various income options available.
- Annuitizing vs. leaving a legacy,
- leaving a legacy when choosing annuities and how they can create a legacy in different ways.
- Second opinions on annuity purchases,
- Bryan explains his willingness to provide second opinions on annuity purchases and the criteria for giving his blessing to such decisions.
- Annuity Suitability and Personal Preferences
- Annuities should match your personality and financial preferences.
- Bryan emphasizes that you have to want an annuity; it’s not just about the numbers.
- Annuities are for security, peace of mind, or as a luxury item, and suitability depends on individual needs and goals.
- Update on the AST Flex Strategy in 2023
- The AST Flex Strategy has evolved into a way to analyze different annuity usage strategies.
- Bryan discusses a case study comparing guaranteed income vs. flexible withdrawals.
- The spreadsheet helps evaluate annuity options effectively.
- Beware of Misleading Annuity Return Rates
- Bryan cautions against misleading high annuity return rates, such as 9.3%, which often involve rollups or bonuses.
- He advises listeners to understand the true nature of these rates before making decisions.
- Choosing the Best Fixed Annuity or MYGA
- Bryan recommends examining contract features and flexibility when selecting fixed annuities or Multi-Year Guaranteed Annuities (MYGAs).
- He highlights the importance of understanding withdrawal options and renewal terms.
- The Critical Role of Annuities in Retirement
- Bryan discusses a case study of a person who decided not to buy an annuity, emphasizing the need for safety in retirement.
- He expresses concern for those who opt for risky strategies and hopes for their financial well-being.
Last Updated on December 24, 2023 by Bryan Anderson
Hey Bryan, Carl here. You’ve done a great job keeping me and I’m sure many others informed. Thanks again to you, I have some firm, stable returns from our annuities. As you know, to conserve my certain retirement and at the same time conserving dollars for the boy’s estate, annuities are a must. Yes, overall the market for me this year did OK. I can’t complain. But, as you know I stay diversified with my Mutual Funds and very conservative, with a small part of my dollars (roughly 15% at most), in the market. I don’t choose to get killed when things go completely south. You’ve been great with your weekly updates and pertinent information. Keep it up! For those of you, out there, he knows what he is doing, and gives smart and wise advise!!!! On a scale of 1-10 I give Bryan a 13!!!!!!!
Carl
Wow Carl, 13? I am truly blessed. All my best to the family for a Merry Christmas!