Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?
The Federal Reserve’s decision to cut its benchmark federal funds rate from 2.5% in 2019 to near-0% in 2020 raises significant questions for those reassessing their retirement nest egg—a common occurrence following a dramatic selloff in equities according to research conducted by Indiana University’s Alessandro Previtero—and the value of annuities in providing guaranteed lifetime income. […]