The Fed’s recent rate cuts are reshaping the landscape for fixed annuities, bringing both challenges and opportunities for investors. Fixed annuities, which offer guaranteed returns unaffected by market fluctuations, remain steady for existing contracts but may see reduced rates for new purchases in a lower-rate environment. 

This could lead less risk-averse investors to consider alternatives like variable annuities or registered index-linked annuities for potentially higher returns. Despite these shifts, the core appeal of fixed annuities—income guarantees and stability—remains intact, making them valuable for conservative financial strategies. 

Rate cuts, while altering some dynamics, do not diminish their long-term benefits, such as tax deferral and customization for individual goals. 

Finsum: Advisors need to be aware of how the different annuity structure is affected by the various interest rates cycles, in order to serve clients. 

Updating your wardrobe can be daunting, especially with the endless online options and the challenge of creating a cohesive look. Clothing subscription boxes simplify this process by delivering personalized selections right to your door. 

These services cater to diverse needs, whether you're refreshing basics, upgrading for special events, or exploring new styles. Key factors to consider include pricing, delivery frequency, and how well the items match your preferences. 

Some boxes even offer personal stylists or curated outfits for convenience and inspiration. With various options like Stitch Fix and Amazon Prime Wardrobe, finding a service tailored to your lifestyle and budget is easier than ever.

Finsum: There are also new platforms that utilize technology and AI to deliver more customized solutions and a cheaper price point. 

With the holidays quickly approaching, many of us feel overwhelmed by the season’s demands and struggle to stay present. Between long to-do lists and short days, it’s easy for joy to take a backseat to stress. 

Modern parenting only amplifies this, with societal pressures and endless expectations creating a constant sense of overload. Add holiday preparations, and it’s no surprise that burnout feels imminent. The key to navigating this season lies in intentional moments—focusing on what truly matters, like creating joyful memories and embracing connection over perfection. 

Small daily rituals, such as a quiet moment by the fire or a walk in the neighborhood, can help recenter us. With mindful choices, it’s possible to reclaim the peace and joy that make the holidays meaningful.

Finsum: I’ve found that mediation is also a healthy, simple, and fairly quick solution to help bring a more peaceful holiday season. 

U.S. annuity sales remained robust in 2023, but life insurers struggled to grow their share of the retirement asset market. Annuity reserves held by life insurers rose 8.9% to $4.2 trillion, slightly lagging the 9% growth rate for total retirement assets. 

Employer-sponsored pension and retirement plans saw a 10.3% increase, reaching $13 trillion, while individual retirement account (IRA) assets grew 13.4% to $13.6 trillion. Annuities maintained a 9.3% share of total retirement assets, unchanged from 2022, despite record sales and strong investment returns.

 IRA assets allocated to annuities grew 9.6% to $614 billion, but their share within IRAs declined to 4.5% due to even greater growth in mutual funds and other investments. 

Finsum: Overall, we believe annuities will continue to play a stable yet relatively modest role in the broader retirement landscape.

Category: Annuities

Tags: annuities, fixed annuities, variable annuities

Ethena has introduced USDtb, a new stablecoin backed predominantly by BlackRock’s tokenized BUIDL fund. Over 90% of USDtb’s reserves will consist of U.S. government debt, cash, and repos, with the remainder held in stablecoins and tokenized Treasuries. 

Designed to complement Ethena’s synthetic dollar product, USDe, USDtb serves as a reserve asset to mitigate risks associated with USDe’s derivative-based strategy during unfavorable market conditions. The reserves for USDtb will be managed by Pallas, a BVI-based entity, while Ethena Labs will provide oversight and investment management through its subsidiaries. 

The stablecoin has undergone independent security audits and is supported by major liquidity providers such as Jump and GSR Markets. 

Finsum: While bitcoin is drawing a lot of crypto attention, stable coin could be a wonderful opportunity looking for slightly different in crypto.