Why Your Parents' Favorite 1980s Investment Is Making a Major Comeback
Imagine reaching the age of 65 and knowing exactly how much money will land in your bank account every single month, regardless of what the stock market does. For decades, many workers relied on company pensions for this peace of mind, but those have mostly disappeared, leaving many people feeling like they are gambling with their future. Now, a financial product that reached peak popularity during the era of neon leg warmers is seeing a massive resurgence as people look for a way to manufacture their own monthly paycheck. What's Going On The product making waves again is the annuity. An annuity is essentially a contract you buy from an insurance company where you give them a chunk of money now, and in return, they promise to pay you a steady stream of income later. During the 1980s, when interest rates were extremely high, these were a popular choice because they offered massive guaranteed payouts. As interest rates fell over the next thirty years, people ignored them in favor...