THE FED MEETING

On the markets:

The Fed meets tomorrow to discuss interest rates and a -.25 bps reduction is widely expected.  This will certainly lower the rates that retirees can earn down at the bank.  The market reaction will more than likely be positive and this will help prop up stock prices in the short term.  However, the reason for the rate cut (the ever weaker housing market) may eventually start weighing on the broader economy.  If the housing market gets any weaker due to falling home prices, mortgage resets, foreclosures, and tightening credit it's effects may spill over into the broader economy in the form of softer quarterly numbers from retailers.  That is when the stock market may become a very dangerous place to be.  A short term jump in the stock market due to a fed interest rate reduction may be a perfect opportunity to start taking some money off the table and safe guarding it with guaranteed interest rates.

Thanks,

MM

Welcome to Immediate Annuities weblog!

Welcome!

I have just started this weblog to create an open dialogue regarding immediate annuities.  I am a Certified Financial Planner for a firm based along the Hudson River in NY.  I began my career as a stockbroker in NYC and quickly realized that I would rather build a business using slow and steady guarantees.  As the baby-boom generation (those born between 1946-1964) nears retirement, and more and more companies drop their defined benefit pension plans for cheaper defined contribution 401K plans, it is more important than ever for retirees to explore the benefits of a guaranteed lifetime income.  I hope this weblog can help demystify immediate annuities and help readers better understand the value and limitations of these types contracts.

Thank You,

MM