Fixed-income annuities get thumbs up

Using a fixed-income annuity in a retirement income account resulted in greater long-term wealth, according to a study.
NOV 12, 2007
By  Bloomberg
Using a fixed-income annuity in a retirement income account resulted in greater long-term wealth for an investor than a portfolio of equity and bond investments — even in an “up” market, according to a study released today. MassMutual Financial Group completed hypothetical analysis testing the performance of various asset allocations over a 27-year period from Jan. 1, 1980 to Dec. 31, 2006. The study used four scenarios and in each case, and investment strategies with a fixed income annuity won in the end with higher returns, compared to a strategy that consisted only of stocks and bonds. MassMutual Financial Group is the marketing name for Massachusetts Mutual Life Insurance Co., based in Springfield, and its affiliates. “So, immediate fixed income annuities are an asset class that should be included as part of a retirement income account,” said Jerry Golden, president of MassMutual’s Income Management Strategies division. Each scenario assumed the client was age 65 in 1980 and had $100,000 to invest and stayed the course with the investment strategy for 27 years.

Latest News

Prime Capital Financial, Carnegie expand Eastern footprints
Prime Capital Financial, Carnegie expand Eastern footprints

The two national RIA firms are bolstering their presence separately in Georgia and Connecticut with new billion-dollar acquisitions.

Embattled TD Bank eyes $14B raise in Schwab stake exit
Embattled TD Bank eyes $14B raise in Schwab stake exit

The banking giant is looking to sell its interest in the online brokerage giant amid the continuing fallout of its historic money-laundering settlement with federal regulators.

Next-gen woman advisor managing $200M switches from UBS to Sanctuary Wealth
Next-gen woman advisor managing $200M switches from UBS to Sanctuary Wealth

Advisor joins the Partnered Independence model for new firm launch.

How did US institutional investors navigate the choppy waters of Q4, 2024?
How did US institutional investors navigate the choppy waters of Q4, 2024?

Median return for institutions managing a combined $1.4T revealed.

Trump set to hit foreign steel imports with 25% tariffs
Trump set to hit foreign steel imports with 25% tariffs

Canada, Mexico appear to be included despite pause on other levies.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.