Do Fixed Annuities Clash with Rising Interest Rates?
As interest rates hover at all-time lows, demand for safe money options has been taking a hit. Proof of this can be seen in the recent LIMRA report which showed that fixed annuity sales dropped 14% in the second quarter of 2012 on a year-over-year analysis. This drop in demand is simply due to the belief that rates are much more likely increase than to decrease going forward. At the current level, it is hard not to have this belief. So what safe money options...
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