What Happens To Bonds and Annuities If Interest Rates Rise

Just a simple rate movement over time of 3% (3.25% discount rate) would reduce the actual value of all inforce US Treasuries by as much as 40% of their market value. Think what would happen if interest rates went even higher? Disaster would loom and trillions of dollars would evaporate if these assets were liquidated. Of course there would be a winner: the US Taxpayer. Treasuries would be replaced with a higher earning interest rate bond, but at a far less value a third of its market value of the original bond.

By |2019-02-19T16:02:25+00:00May 8th, 2019|Annuities, Bonds|

457 Retirement Plan Options

A 457 Plan might be a good choice for your retirement planning What Is A 457 Plan? A 457 plan is a type of defined contribution plan, for which employees of state and federal governments, agencies, and tax-exempt organizations. Contributions made to the plan with pre-tax money, earnings, and contributions are tax-deferred while under the [...]

By |2019-03-25T20:58:48+00:00May 7th, 2019|Retirement Planning|

The Tax Deferred Annuity

A tax-deferred annuity helps manage tax liability.   A tax-deferred annuity is a plan in which income tax on an original deposit of investment income is not charged during the investment period. The tax liability is deferred until the owner or beneficiary begins to receive (or accesses funds) periodic payments of earnings from the invested [...]

By |2020-01-09T23:26:51+00:00May 2nd, 2019|Annuities, Annuities 101|