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Wed 22 Jan, 2003 05:51 am
How low do you think the %interest will deline over the next year for fixed income annuities? I see that TIAA-CREF 's fixed income annuity is now paying 3% through March 2003.
Most are written with a fixed rate guarantee at 3%, meaning they can go no lower than that.
That's what I thought. But recently, the idea has started to surface that the Insurance Companies will try to lower the % to less than 3.
It's already under way, N.H.: Allianz sells fixed annuities with 2.5% guarantees.
(This is all written into the contract, so just know what it is you're getting.)
That's getting a little low!
Hardly competitive. Apparently they are having trouble getting good returns on their money, too.
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