Jeff Kennedy

Jeff Kennedy

Jeff Kennedy, LUTCF , started out in the Insurance business in 1971 and is still going strong 48 years later and has helped thousands of clients with their insurance needs over those years. Jeff was born and raised in Jasper, Alabama and graduated from Walker College and then attended the University of Alabama majoring in business and marketing. He is the Principal and manager of Kennedy Advisory Group, in Birmingham, Alabama for the last 19 years.

Kennedy Advisory Group

3109 Woodcliff Cr.

Birmingham, Alabama 35243 (205) 222-2487
Back To Articles

Watch out for bait and switch with annuity yields


Annuities are not that type of high-yield investments such as stocks. However, the internet is filled to the brim with claims of 10%, even 15% annuity returns. Want to know a secret? These levels of returns do not exist.

So why buy an annuity?

Simple answer: safety and security. Annuities are backed with investments -- US Treasuries, AAA, and AA-rated corporate bonds -- you have no market risk.

There is one category of annuities that do pay a higher yield than market returns. If you allow the annuity company to hold your funds long-term, you can receive a higher than market yield return if you receive the funds as income.

Income? Isn’t that generally the best use for annuities? Almost without question, yes!

If you are part of the group worried about long-term income and making sure your funds last as long as you do, consider an annuity. Let the insurance company bear the risk and pay you every month, regardless of how long you and your spouse live.

If you use your retirement funds as retirement income, it is possible to receive a long-term return of 5-8%, not bad considering other available options.

Let the insurance company hold and use your funds, and you benefit, sensible and straightforward.

However, be careful, annuities are long-term commitments; if the benefits match up with your long-term needs, then it can be a marriage made in heaven.

Remember, marriages made in heaven must be lived on earth, make sure your goals and needs align with the wonderful benefits annuities can provide, then it could be a heavenly deal.



Discover more about annuities by clicking here.

Best Annuity Rates Report Cover

Annuity Questions?

Download the 2021 Annuity and Investment Report Now and learn more about annuity options that can help you achieve your retirement goals.

Safe Money Guide Report Cover

Safe Money Guide

Download our Safe Money Guide and learn more about safe retirement options that can help you achieve your retirement goals safely - FREE!

Life Insurance Guide Report Cover

Life Insurance Guide

Learn more about the various life insurance options available to you that can help you achieve your goals.

Sign up for our newsletter.

Safe Money insights and tips sent to your inbox twice a month.

Sign Up Now!