Michael D. Chamberlain, principal of Chamberlain Financial Planning & Wealth Management with offices in Santa Cruz, Campbell and Sacramento, Calif., doesn’t make a regular practice of recommending annuities, but he believes there are some instances where they make sense.

Says Chamberlain: Fixed annuities can work in a high interest rate environment, where despite the possibility of falling rates the annuity would continue to pay out based on the initial higher rates for an extended period of time. Conversely, they would not be as good an option in a low-interest environment, where the payout would be lower and there’s the prospect of rates climbing over time.

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