Why Take 1.15% When You Can Get 4.5%?
New York Life announced earlier this year it’s short and mid term, guaranteed fixed annuity rate of 1.15%. Citing a continued flat-line market, NYLife is offering rates little better than a CD as a guaranteed floor rate.
There is a market value adjustment, so the actual yield to maturity may be higher, however the floor may also be all that is earned
When considering fixed annuities or options similar to the NY Life above, take a moment first to call us and discuss Secondary Market Annuities.
Short and mid term lump sums routinely pay 4.5 to 5% effective rate of return. Deferred…. compounding… and often, from NY Life itself!
To put it in perspective, a $100,000 investment today will pay back $102,311.89 in three years at 1.15%
The EXACT SAME INVESTMENT of $100,000 today will pay $109,197.02 at 4.5%
That’s nearly a 4X increase in real dollars – $2311 in Interest income vs $9197!!
Secondary Market Annuities are pure and simple, more income at a lower cost. Give us a call to find out more.