Should you consider a Buffer Annuity?

This year has yielded very volatile market conditions, primarily due to the COVID-19 pandemic. As a result of the Federal Reserve, interest rates are now very low and there isn’t much indication that they will rise any time soon. This implies that bond yields will be very low and it will be more difficult to achieve good stock market returns. One strategy to consider for those who seek downside protection in a volatile market, while retaining some exposure to stock market returns is to utilize a buffer annuity. These are designed to limit your potential losses when markets decline in exchange for limiting your upside potential when markets are rallying. This article by David Stone offers a good overview of how these work and how they can be an appealing strategy for some clients.

We have recently joined with DPL Financial Partners, an insurance network that offers low-cost, commission-free insurance and annuities. As a fiduciary, working with DPL allows us to offer the best insurance and annuity solutions to our clients.