Fixed-income annuities get thumbs up

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.