Industry News

Fixed Annuities Rounding the Corner?

It would appear that the interest rate market may be making a bold move forward.  Energized by positive market returns and employment statistics for February, the yield on benchmark 10-year Treasury bonds climbed to its highest level in 11 months on Friday. March 8,  to 2.06 percent. The yield has risen from about 1.70 percent since the start of the year, and from 1.85 percent since March 1.

Fixed annuities are one of the first investment vehicles to respond to such changes.  Now may be the time to direct your clients to considering putting some of their long-term money into a 5-, 6-, or 7-year surrender charge annuity.

Conversely, the Fed remains concerned about the stability of the equities market.  the prime rate hasn’t budged.

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