Hyers & Associates

The Federal Reserve recently paused in voting for further rate increases as inflation appears to be moderating and revised economic growth is slowing. Whether this is a temporary lull or conversely that the U.S. economy is heading for a soft landing is yet to be determined. There appear to be signs supporting the idea that inflationary pressures still exist, but to what degree this affects the Fed and the overall market is unknown.

During this current two month lull stock indexes have been performing well and bond yields have been decreasing. As the treasury market follows suit, fixed annuity yields continue to decrease as well. A five year annuity has decreased from a guaranteed 5.20% yield to 4.85%. While these returns are still attractive for those looking for creditor protected, tax deferred growth, it is the indexed annuity market that is witnessing a resurgence.

Typically fixed-indexed annuities have an enticing first year bonus and the ability to produce yields greater than that of a traditional fixed annuity. In fact, many of these accounts have a historical average of 7% or sometimes better. Investors looking for reliable accounts during their retirement should give the indexed annuity more that just a passing glance.

To learn more about the performance of an indexed annuity, use the link below:

http://www.ohioinsureplan.com/charts/