When searching through the different lifetime annuities out there, it’s important that you fully understand the fine print associated with them.

You should know how your personal investments are managed, after all, and one trick that we’ve noticed within the industry is that annuity rates are typically advertised or quoted to be as high as seven or eight percent.

While that may sound like a heck of a deal — and it is, if you can get it — there are some important caveats which could dramatically impact the value of your lifetime annuities over time.

Before we dive deeper, it’s important that we state the core message of this blog. The takeaway is this: don’t get fooled by annuity distribution rates.

What Are Annuity Distribution Rates?

Brokerages which offer products such as lifetime annuities typically quote their rates as high as seven or eight percent on, say, a 20-year note.

However, there’s a big problem with this too-good-to-be-true offer.

Because these distribution rates are tied directly to the health of the stock market, that means they are “distribution” rates, and not fixed or income rates. What that means for your lifetime annuities is this:

  • If the stock market index goes up 15-20 percent during a set period, then that is great news for your annuities. Typically, that is when your rates will be hovering closer to seven or eight percent.
  • However, when the stock market doesn’t reach those rare huge heights, or even worse if it happens to go down, you won’t be earning anything in your annuity. In fact, you could be losing.
  • In the event of a fall or hiccup in the stock market, you definitely won’t be seeing those high returns that sold you on a lifetime annuity. While you will still receive your monthly payments, you will also be hurting the overall value of your annuity. That’s because those distributions will actually be coming out of your principal investment.
  • In summary: Sure, your distribution rate might be seven or eight percent, but the principal value of your lifetime annuities could ultimately be compromised by the stock market index.

What’s The Solution?

So what options are left? If you can’t trust the lifetime annuities offered by the major companies, what (or who) can you trust?

Fortunately, there is a way to capitalize on lifetime annuities without having to suffer through the peaks and valleys of the stock market index. It’s your savings and financial well-being at stake, after all.

At Tactical Wealth, our innovative Fixed Income Fund offers the same great benefits of other lifetime annuities — low risk, stable monthly income, flexible terms — but instead of buying stocks, our fund purchases mortgage and trust deed loans with historically stable valuations.

That means our fund is backed by real assets, and we also have an established contingency reserve to further protect against risk in the event of a non-performing loan.

But the best benefit of all is our interest rates. When you compare our interest rates to annuities, you’ll find that our fixed rates are higher and more reliable in every case.

While we aren’t able to offer rates of seven to eight percent, our 30-year lifetime annuities do carry a rate of 5.75 percent — which, in the long run, actually provides significantly more lifetime income (because the rate is always fixed) and principal value (because that is never compromised).

Searching for lifetime annuities that you can count on doesn’t have to be difficult or filled with skepticism anymore. Our income rates are guaranteed to never change throughout the duration of your note, which provides you with the peace of mind you deserve when it comes to your personal investments.

Discover the Tactical Wealth Fixed Income Fund today to learn more about how you can receive stable, consistent monthly income for life.