Episode 357: Why You Should Replace Your Bonds with an Annuity

In this episode of The Power of Zero Show, host David McKnight discusses why it may make sense to replace the bonds in your retirement portfolio with a Fixed Index Annuity, and how doing so could lead to a much better outcome for your retirement. For decades, financial advisors have followed the conventional wisdom of the 60-40, 60% stocks, 40% bonds. As you approach retirement, that ratio shifts even further in favor of bonds… …however, the problem is that today’s bond market isn’t built like it used to be, and bond yields are still below their historical averages. David touches upon the Fixed Indexed Annuity or FIA. Remember: when you replace the bonds in your portfolio with Fixed Index Annuities, you’re not just getting similar safety. You’re actually improving your outcomes across the board. David stresses that, in retirement, it’s not all about rates of return. It’s about how consistent that return is. Something good to keep in mind: bonds can and do lose value. If interest rates...