June 6, 2023 // All
Most of us have at least one embarrassing photo – or maybe many, many photos – of a fashion trend we followed just to fit in. Even today, the endless scroll of a social media feed provides ample opportunity to feel like you’re missing out on places you’d like to visit or events you could have attended.
Others are proud to resist what’s “in” and frequently chart their own course, but still probably have a handful of pictures they’d be happy to never see again.
When it comes to financial decisions, perhaps a balance of both approaches is best. Not every financial solution is one-size-fits-all, but if you play your cards right, a well-timed opportunity can really pay off.
Consider this: according to the Life Insurance Market Research Association (LIMRA), total annuity sales across the industry were at an all-time high in 2022 at just over $312 billion and were projected to continue in that direction to begin 20231.
Sure, that’s a nice, unfathomably big number, but why should an insurance industry trend matter to someone like you, who may have a family to protect, financial goals still to achieve, or a retirement to plan for?
The trend illustrates that a lot of people, just like you, have recently turned to annuities to help them achieve their goals. But why?
The explanation, according to CNBC, is due to how consumers have responded to recent economic uncertainty, including a downturn of traditional stocks and bonds and the fear of a possible recession2. The Federal Reserve raised interest rates, which leads to larger annuity payouts.
Annuities can be a great way to protect against these economic factors. Fixed annuities provide a guaranteed rate of return, and index annuities offer a minimum guaranteed interest rate – meaning your money can continue to grow, regardless of what the rest of the financial market is doing.
If you aren’t familiar with annuities, we break them down for you right here, but in short: it’s an investment vehicle that can help you plan for retirement. You pay a lump sum or make a series of payments over time, and your money earns interest and can be paid back to you for the rest of your life.
That’s the key difference between annuities and other investment options – even once your contributions (and the interest earned) are returned to you, the payments can continue.
AAA Life recommends speaking to a financial advisor to decide what the best long-term savings plan is for your lifestyle.
If an annuity is right for you, AAA Life offers experienced agents who can walk you through your options and help you on your path to additional financial peace of mind. Call us today at (888) 422-7020 to get started.
1LIMRA: Record Annuity Sales in 2022 Expected to Continue Into First Quarter 2023. LIMRA. March 8, 2023.
2Iacurci, Greg. Annuity sales hit record last year, eclipsing sales during 2008 financial crisis amid fear, higher rates. CNBC. Feb. 2, 2023.
These financial tools help you achieve somewhat different goals.
You may already have life insurance, but does the policy you originally signed up for account for how your life has changed since then?