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Are Fixed Annuities Better Alternatives to Bonds?- Episode 117

In the classic 60/40 stock-bond portfolio, the stock portion is supposed to provide the gains, while the task of the bond portion is to cushion the fall when stocks are going down in value.  This past year, though, things haven’t quite worked out that way.

Both stocks and bonds are down in 2022, as interest rates have risen in an effort to thwart inflation.  Without this so-called “protection” from bonds, could there perhaps be a better alternative that an investor may want to consider?

Podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® discuss why certain fixed annuity products may potentially work better than bonds on this week’s episode of Managing Your Financial Future.

Important Information:

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities. Investment products described herein may not be offered for sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful or prohibited by the specific offering documentation.

No client or prospective client should assume that this information, or any component thereof, serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.

It is important to keep in mind that investments in fixed income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise and rise in price when interest rates fall), financial (or credit) risk, inflation (or purchasing power) risk and special tax liabilities. Interest may be subject to the alternative minimum tax. Treasury securities are backed by full faith and credit of the U. S. Government but are subject to inflation risk.

Insurance services offered through LPL Financial or its licensed affiliates. CA Insurance Lic. #0518721

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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