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