Can I Get a 7% Annuity?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Can I Get a 7% Annuity?

No, as of June 7, 2024, a 7% annuity is unavailable.

The Reality of 7% Annuities

Misleading Advertisements

Many advertisements claim the availability of annuities with a 7% return. These figures can be misleading, often referring to hypothetical lifetime income figures rather than actual fixed interest rates. It’s crucial to distinguish between advertised rates and the genuine interest rates offered by annuity products.

Current Interest Rates

As of June 2024, the highest available fixed interest rate for annuities is around 6%. This rate is typically found in Multi-Year Guaranteed Annuities (MYGAs), which offer a fixed interest rate over a specified period. While this is lower than the advertised 7%, it still represents a competitive rate in the current economic environment.

Premium Bonuses

Some annuity products offer premium bonuses, which can be as high as 20%. These bonuses are applied to the initial premium, increasing the amount used to calculate future payments. While these bonuses can enhance the value of your investment, they are not equivalent to a fixed interest rate and should not be confused with the actual rate of return.

Can I Get A 7% Annuity

Types of Annuities

Fixed Annuities

Fixed annuities provide a guaranteed interest rate for a specific period, making them a safe option for conservative investors. As mentioned, MYGAs currently offer up to 6% fixed interest rates.

Variable Annuities

Variable annuities allow you to invest in various sub-accounts, similar to mutual funds. The returns depend on the performance of these investments, which can be higher or lower than the fixed rates offered by MYGAs. However, these products come with greater risk and potential for fluctuation.

Indexed Annuities

Indexed annuities are tied to the performance of a stock market index, such as the S&P 500. They offer a minimum guaranteed interest rate, with the potential for higher returns based on market performance. The actual return can vary, and while some indexed annuities may advertise high potential rates, these are not guaranteed.

7% Annuity

How We Can Help

At The Annuity Expert, we understand the complexities and emotional weight of planning for your financial future. As an insurance agency, annuity broker, and retirement planner with 15 years of experience, we are dedicated to finding the best solutions at the lowest costs for our clients.

We believe in transparency and integrity, ensuring that you fully understand the products you are investing in and how they align with your financial goals. Misleading advertisements can create confusion and doubt, but we stand against such practices. Our mission is to provide clear, accurate information and guide you to make informed decisions.

When it comes to annuities, the core problem is often the misunderstanding of what is realistically achievable in terms of returns. This misunderstanding can lead to disappointment and financial insecurity. We address this by providing accurate information and personalized advice tailored to your specific needs and preferences.

The Reality Of 7% Annuities

What We Recommend

First Step: Initial Consultation

The first step is scheduling a free initial consultation with us. This session will discuss your financial goals, current investments, and retirement plans. This step’s main benefit is understanding your needs clearly and how annuities can fit into your overall financial strategy.

Second Step: Personalized Annuity Plan

Next, we will create a personalized annuity plan for you. We analyze various annuity products, compare rates, and consider your risk tolerance and investment horizon. The main benefit is a tailored plan that maximizes your returns while minimizing risks, ensuring a secure financial future.

Final Step: Implementation and Monitoring

In the final step, we assist with the implementation of your annuity plan and provide ongoing monitoring and adjustments as needed. The main benefit is peace of mind, knowing that your investments are managed by experts dedicated to your financial well-being.

Features and Benefits

  • Tailored Annuity Plans: Personalized strategies that meet your unique financial goals.
  • Comprehensive Market Analysis: Ensuring you get the best rates and products available.
  • Ongoing Support: Regular reviews and adjustments to keep your plan on track.
  • Expert Guidance: 15 years of experience in insurance and retirement planning.

By not working with us, you risk falling victim to misleading advertisements and not maximizing your retirement savings. On the other hand, choosing us means entering a partnership dedicated to your financial success. You will experience the confidence and security of having a solid financial plan, tailored to your needs, ensuring a comfortable and worry-free retirement.

Contact us today for free advice or a quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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