Bonds and Annuities: Trash or Treasure?

One man’s trash is another man’s treasure. So, which is it when it comes to bonds and annuities? Brain discusses some key things to know about both on today’s episode.

Honest Takes:

You have to make a lot of decisions when you are financial planning. Today we discuss two somewhat controversial financial decisions: annuities and bonds. Brian talks about the pros and cons of annuities and then shares the good and bad with bonds on today’s episode. 

When estate planning, some find their heirs are not as good at financial planning. Should you leave them an annuity instead? There are different kinds of annuities, so this could have an impact on whether or not this is the right decision. In Latin, annuity means “to pay out.” This could be set up in a way that pays monthly for the rest of your life. For example, a pension is basically an annuity. 

An annuity typically ends when the person passes. Will other family members be left in a lurch without that source of income? You never know just how long you’ll live, so find out just what the annuity entails before getting one. 

Should you invest in bonds? The “Bond King” recently called bonds trash. On the other hand, investment strategist Ian Harnett told CNBC we are facing a recession and to stick with bonds. Which expert should we listen to? Brian explains the decisions and options retirement investors have to make. 

Reach out to a financial advisor for guidance when making investment decisions like these to ensure you’re doing what’s right for you and your family. 

Listen to the entire episode or click on the timestamps below to skip ahead.

[0:12] What are the pros and cons of an annuity?

[4:18] The “Bond King” recently said bonds are trash. Are they?

Today’s Truth:

“Bonds have dropped because the interest rate environment has dropped so low.”

Brian Bowen

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