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FIAs could outdo bonds over next 10 years: Ibbotson

Bond returns currently may not be up to the challenge of meeting the anticipated retirement needs of U.S. investors, research finds.

Annuity spelled out in letter tiles Fixed indexed annuities could provide an answer to the problem of outliving one’s retirement funds. (Photo: Shutterstock)

New research by economist Roger Ibbotson indicates that bonds could be the wrong place to be in retirement portfolios over the next decade, with fixed indexed annuities poised to deliver better returns.

The white paper “Fixed Indexed Annuities: Consider the Alternative,” researched and written by Ibbotson and his team at Zebra Capital Management, suggests that bond returns in the current historically low interest rate environment may not be up to the challenge of meeting the anticipated retirement needs of U.S. investors, with many possibly being at risk of outliving their retirement savings.

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Marlene Satter

Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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