Many are still in search of a “safe haven” to park money.
Plenty of people had CD’s mature and now have money on the sidelines in Money Market accounts waiting for interest rates to go up.
Hello! 5-year Fixed Annuities are guaranteeing 2.70% while today, the 5-Year CD is at .78% (8/12/14 bankrate.com).
Clients with maturing CDs mostly reinvested in Money Market accounts because the CD rates are so low they wanted to wait and hope rates would increase.
Let’s look at where we are now in this example showing $100,00 deposited in a Money Market versus the 5-year annuity:
|$100,000 deposited 8/14/13: Money Market : .11%|
|Money Market 8/14/14: $100,110 (before taxes)|
|$100,000 deposited 8/14/13: Annuity: 3%|
|Annuity 8/14/14: $103,000 (tax deferred)|
Please contact our office for any questions on saving through annuities.