According to Annuity News Journal, the best time to purchase a fixed annuity is during a recession. In the article “Tumbling Annuity Rates,” Christi Roberts recommends locking in fixed annuity rates now because they may be going down soon. As the financial markets recover all across the world, annuity rates are likely to change to a lower center. It’s not like fixed annuities are offering huge returns, but Roberts says that this is the highest fixed annuity rates are likely to be as economies get more stabilized. Many advisors are telling their clients to invest in fixed annuities and other fixed rate investments while the returns are good.
When there is a recession, investors are wary to give up control of their money for a long time, or forever as is the case with many annuities. They are worried that they will need to access their money in case of a financial emergency like a layoff. Because of this, banks and insurance companies have to offer the best fixed annuity rates they can so that investors are willing to turn over control of their money during difficult financial times. During The Great Recession, interest rates were so low that everyone who qualified for a loan was nearly getting free money. Those who used that money to invest in fixed annuities made great profits because of the difference in rates. Now may be your best time to buy fixed annuities for awhile.
Written by Rachel Summit
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