Glenn Daily on Buying Annuities and Why it Might Make Sense to Wait
Glenn Daily is one of the top financial advisors in the country.
Specializing in life insurance and annuities, Glenn is widely...
Think about rising rates when you hear the term interest rate risk. For example, if you have a variable rate mortgage or own a bond, you’re exposed to interest rate risk. The higher the risk, the more susceptible your investments are to the rise in the cost of borrowing. In the case of a floating-rate mortgage, the exposure is straightforward. If interest rates are higher when your mortgage is to reset, you just have to fork-out more each month. In the case of bonds, rising interest rates lead to falling bond prices, and a shrinking of your portfolio. It may seem counter to common sense but this is how the relationship between interest rates and bond prices plays-out. When interest rates rise, the old bonds are less attractive than new instruments that pay-out more. As a result, there is less demand and lower prices for the lower yielding bonds.
Glenn Daily is one of the top financial advisors in the country.
Specializing in life insurance and annuities, Glenn is widely...
Submitted by tom on
An interesting article (click here to read) from Darla Mercado at Investment News discusses
Annuities are complex, largely misunderstood, and often misrepresented in popular financial media.
The reality, though, is that these financial products are becoming an increasingly important part of the financial plans of millions of people around the world. In fact, annuities are a vital component of the...