Quote:
Originally Posted by CybrSage
I am curious, will the view on annuities change if a certain candidate gets in office and is able to enact a tax on money not yet earned, aka unrealized capital gains?
No politics please, just asking how such a thing may or may not alter views on annuities.
Also, if one is seeking safety, but not stupid levels like a savings account whose interest is far below inflation, what is recommended? For a risk adverse person. Asking for a friend (and in this case, I really am.  ) |
Personally, I don't think the view on annuities would change. The only proposal to tax unrealized capital gains that I have heard would only affect people making more than a million dollars per year.
Regarding higher interest rates, I don't know of anything that is safe and has a higher return than a money market account, such as what Vanguard offers. Currently, they are paying about 5.25 percent, which is slightly higher than the current inflation rate. I also keep some cash in the Vanguard High Yield bond fund (junk bonds) that is paying about 6.25 percent.