Do you lock in the current market rate when you purchase an annuity? Most of us don’t because it means giving away our control over our retirement savings. The CoRI Index provides a solution to this dilemma by allowing individuals to access the benefits of annuitization without having to give up any asset liquidity or control. This innovative index allows investors to rebalance their portfolios and reallocate assets while still locking in annuity prices. In this blog post, Goldstone Financial Group explains what the CoRI Index is and how it can be used as a powerful tool for securing your retirement income now and in the future.
Goldstone Financial Group On CoRI Index: A Tool To Lock-In Annuity Prices Without Annuitizing
The CoRI Index, or Cost of Retirement Income, is a tool designed to help lock in annuity prices without actually annuitizing. According to Goldstone Financial Group, it uses a variety of data and information about current market conditions in order to provide investors with more accurate pricing for retirement income products such as Fixed Annuities. This helps protect retirees from the volatile market environment so they can focus on their long-term goals.
In practice, the index works by taking into account actuarial assumptions, mortality tables, and interest rates in order to determine the cost of providing retirement income solutions over an extended period of time. For example, if someone wanted to purchase an immediate fixed annuity that would pay them a certain amount each month for the rest of their life, the CoRI Index would use market data and actuarial assumptions to determine what price they should pay in order to get that retirement income. This, as per Goldstone Financial Group, ensures that investors do not overpay for their annuity and are able to lock in a fixed rate of return without having to commit to an annuitization period.
According to the American Academy of Actuaries, the average CoRI Index rate has been 3.2% since January 2020. This means that, on average, individuals looking to purchase immediate fixed annuities have a good chance of obtaining a rate of return no lower than 3.2%. However, this number can fluctuate depending on market conditions, so it’s important for investors to stay up-to-date and take advantage of the lowest rate when it’s available.
For example, in May 2020, the CoRI Index reached its all-time low of 2.38%. This would have been an ideal time for individuals to purchase immediate fixed annuities as they could lock in a much higher rate than normal. Unfortunately, many people missed out on this opportunity because they weren’t aware of the CoRI Index or how it works.
Goldstone Financial Group’s Concluding Thoughts
According to Goldstone Financial Group, the CoRI Index can be a great tool for retirees who want to protect themselves from market volatility and ensure that their retirement income is consistent over time. By paying attention to the index and taking advantage of lower rates when they are available, retirees can make sure that their money lasts as long as they do. It is important, however, to make sure that you understand the risks associated with immediate fixed annuities and speak with a financial advisor before making any investments. With the right information and guidance, you can use the CoRI Index to your advantage and ensure that you get the most out of your retirement income.