Annuities are better bargains if you purchase them right before interest rates decline. But if you’re worried that inflation could climb significantly higher, they may still be a bad idea.
It’s important to point this out because of the spate of recent articles urging us to buy annuities right away, since interest rates are presumably about to drop significantly. The Advisor Perspectives website, for example, recently featured an article arguing that, because rates are headed lower, “now is the best time to act and secure elevated rates for annuities.” MarketWatch columnist Brett Arends made a similar point.
