How Does Inflation Affect Annuities?

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June 29, 2013

David Racich

Inflation can affect the purchase of a product, especially if the product yields a return below the inflationary rate, i.e. you lose purchasing power. If the fixed annuity rate is better than inflation and it defers taxes until you use it, then that can be a value proposition worth reviewing. So calculate the cost of living and determine your tax bracket to see if annuities are a fit for you.

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