| As the U.S. economic recovery
continues, it appears likely that interest rates will continue to
trend upward. General consensus agrees that we will likely see
a one-quarter point (0.25%) increase in rates by June 30, with the
Fed Funds rate reaching 2.25% (from the current 1.00%) by year end
2004. While this may act as a damper to corporate earnings,
and thus stocks generally, such a gradual rate increase will be
welcome news to retirement savers.
Annuity interest rates have already
begun to reflect these upward trends, with most annuities now paying
a base rate of at least 3.50% or better. Remembering that
annuity interest rates "float" annually, and thus should rise over
the next several years, many of the longer-term annuities are now
guaranteeing double-digit returns (see, for example, the
Allianz PowerDex Annuity which now offers an
immediate 10% cash bonus and pays a huge 13.85% First-Year return
and an attractive 5.49% Five-Year yield, each year tax deferred).
The following is this month's list of
the Best of the Best...from shortest duration to longest. Note
that longer durations offer higher rates and higher cash bonuses. |
