How Interest Rates Affect Annuities
Updated: 23 hours ago
Interest rates change over time, and the rate environment when you buy can affect what an annuity pays. Here’s how interest rates affect 4 types of annuities: ✔️ Single Premium Immediate Annuity: If rates are high when you buy an SPIA, you will typically see a higher rate of return. ✔️ Multi-Year Guaranteed Annuity: Interest rates directly impact MYGAs, since they provide a set interest rate for a specific period of time. ✔️ Fixed Index Annuity: If you own a fixed index annuity designed for growth, interest rates can have a significant effect. Interest rates will have less impact if you have a fixed index annuity with an income rider. ✔️ Variable Annuity: Because a variable annuity is directly invested in the market, interest rates can indirectly affect your variable annuity assets. If you’re not sure which annuity is right for you, I’m happy to give you step-by-step guidance. Call me at (727) 513-8338 or schedule an appointment, and we’ll figure out how to make your money work for you together!
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