For anyone who has enjoyed the big rally in tech shares after the rough February through March period, JP Morgan has bad news…see the full story on our partner Magnifi’s site
Chinese companies allowed to raise funds in the US market saw those funds jump by…see the full story on our partner Magnifi’s site
The global chip shortage continues to ravage…see the full story on our partner Magnifi’s site
The last year has been rough for annuities rates. The big drop in yields once the pandemic took hold meant annuities providers had to quickly and sharply cut their rates. But at the same time, the need for annuities has never been higher, given volatility and increased rates of retirement as Baby Boomers age. So where can one find the best annuities? Check out Fidelity, Allianz, New York Life, USAA, and MassMutual. For example, Allianz has no annual fees on their fixed index annuities. New York Life offers some very strong variable annuity options, including the ability to withdraw 10% of the account without penalty, and a minimum account value of only $2,500.
FINSUM: More and more advisors are moving into annuities as client need is rising. This has led to innovation in the space (such as no-commission annuities for RIAs) as well as more product creativity.
Income is scarce and investors need it more than ever (funny how that happens). Bonds look very risky given the direction of rates. So where can investors turn? Take a look at three different asset classes: blue-chip REITs, preferred shares, and property-backed loans. Blue-chip REITs can be a good investment because they have high yields (e.g. 4%+), but are still quality companies. They are also often trading at a discount because of the pandemic. Check out ticker “0”, Realty Income. Private property loans are another good option, yielding 8-12% , and often having good LTVs of around 60%, which means you have some significant downside protection.
FINSUM: These are some good alternative income options. Our personal favorite are the REITs because of their liquidity, but private property loans are a good option too, especially given the new economic cycle.