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Taxable Bond Funds & Fixed Index Annuity Returns

Annuities

What fixed index annuities and bond mutual funds share in common is they both earn interest and are affected by moves in interest rates. This chart compares the actual five year annualized returns for fixed index annuities and taxable bonds funds for the last five periods. The chart speaks for itself.

Taxable Bond Funds & Fixed Index Annuity Returns, 5 year indexed annuity returns

The yearly fixed index annuity returns are the average of yearly reported returns representing multiple index annuity carriers and annuities between 2009 and 2018 using a 30 September year-end. Since different companies have slightly different issue dates all interest periods do not fall on the 30th. Carriers selected the policy information submitted. This should not be viewed as a comprehensive or balanced examination of the interest credited by the index annuity industry; returns averages are based on the data received. Taxable bond return information is obtained from the public pages of the Wall Street Journal. Information is from sources believed accurate but is not warranted; we do not provide investment, tax or legal advice. November 2018