Guaranteed Lifetime Income is a Better Solution than Taxable Bonds

Rajiv RebelloAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

With interest rates at near 20-year highs, guaranteed lifetime income locks in those rates for the rest of one’s life, creating better retirement outcomes.

If you own a home, then you’re probably wishing you had locked in a mortgage rate back in 2020 when 30-year mortgage rates were under 3%. Buying a home in 2023 is not nearly as attractive when interest rates are at near 20-year highs.

While high interest rates are not good for borrowers, they are for those who lend money at high interest rates. What if there was a product that allowed you to be the lender and lock in today’s high interest rates for the rest of your life? Guaranteed lifetime income is one such product. By lending money to an insurance company today, you are locking in these high interest rates for the rest of your life while also benefiting from mortality credits that improve the return, hedge against interest rate risk, and are tax efficient.

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