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Better rates on fixed annuities
Low rates undercut the strategy of using an annuity for a safe income stream, Moore says.
"The monthly income a client receives from their fixed annuity is based on interest rates at the time they purchase the annuity," he explains. "With interest rates at all-time lows, annuity payouts are also at all-time lows."
Moore has been urging investors to avoid annuities until rates climb.
"Another option is to buy a smaller annuity today, such as 25 percent of what (investors) would normally buy," he says.
Doing this several times from different companies over a few years allows you to buy at various interest rates, he says. Plus, buying from separate companies protects you if one of the companies goes bankrupt.