savings yield vs annuity
how do you feel about usine short (1-5year) annuities to increase return on cash?
Terry Says
If you are willing to lock your money up for 1-5 years, you can use the insurance industry’s “equivalent” of a CD, which is surely paying a higher rate than your bank. It’s a fixed rate, tax-deferred annuity. But at the end you will pay taxes on the money you withdraw at the then-current rate for ordinary income taxes. (Or if you like the new rate they are paying at the end of the term, you can roll it into a new product.)
Just make sure you have plenty of liquidity OUTSIDE the money you put into this type of annuity.