- Annuities sales surged to a record high in second quarter.
- Investors are looking to lock in higher interest rates and protect themselves from market gyrations.
- Annuities can be a good addition to a diversified portfolio, but they can be complex and pricey.
If the recent market swoon has made you nervous about your retirement funds, an annuity may help calm your nerves and protect you against giant swings in the market if used right, some financial advisers say.
That’s likely why annuity sales are soaring. Second-quarter sales are projected to top $74 billion, setting a record, according to life-insurance-industry-funded research firm LIMRA. That would be more than $5 billion above the previous record set during the financial crisis in the fourth quarter of 2008.
