🧐 Are annuities a good investment?

Stat Of The Day

5.9%

Fit check. What kind of socks are you wearing right now? If they’re low-cut, you could be showing your age. Since 2021, the sale of Hanes above-the-ankle socks (which, are "in" according to teens and Gen Z) rose 5.9%. Meanwhile, sales of low-cut socks dipped 3.8%, as The Wall Street Journal reports.

Are Annuities A Good Investment? More Women Say Yes As Sales Break Records — We Explain

When we think about our financial fears, one tops the list: Running out of money before we run out of time. According to the Center for Retirement Research at Boston College, half of all US households are at risk of not having enough income to maintain their standards of living in retirement.

The bottom line is that Americans have a problem and we know it. The good news is that we have the ability to fix this issue in our own individual lives, with tools we already have access to today. They’re called annuities, and more people are interested in, and buying annuities, than in years past.

Minji Ro, Chief Strategy Officer at Gainbridge, and Jason Fichtner, Chief Economist at the Bipartisan Policy Center recently joined host Jean Chatzky on the HerMoney Podcast* to talk about what annuities are, why economists like them, and the advantages of considering them as part of your retirement portfolio.

One of the reasons more people are buying annuities? People–especially women–are living longer. "It would make sense that a portion of your retirement assets are in something that will pay you for as long as you are alive, even if you eat into everything that you've invested in," Ro says.**

This Week In Your Wallet

Stealth shoppers…no, they’re not new superheroes from the Marvel Universe. They’re people who are skilled at concealing spending from their partners. "Nearly two-thirds of people who live with a spouse or significant other hid a purchase from their partner over the past year," according to a recent survey of over 1,000 Americans, as The Wall Street Journal reports. "A quarter of them hid a clothing purchase and one-in-10 manipulated financial records to conceal their spending." The reasons for sneaky shopping? Some of the more common ones are guilt over their spending and to avoid an argument. Take, for example, Evan Elkowitz, a designer and stylist who has perfected the art of stealth shopping. "She enters through the back door and shoves her packages in the coat closet, behind an armoire, or in the laundry basket," notes the WSJ. "At night, when her husband and three sons are asleep, she puts away her haul."

Think about the big ticket purchases you make in your life. Perhaps your phone, car, and your home are on the list. If it’s been a while since you’ve upgraded, you aren’t alone. "As of March, 31% of iPhone buyers had their last iPhone for more than three years, as did 22% of Android buyers…that’s up from 6% for both smartphones a decade ago," reports Sherwood. The average age of a driver’s vehicle is now 14 years (up from 11 in 2014), and people stay in their homes for almost twice as long as they did in the early 2000s. "Macro circumstances are forcing frugality on us," says Brett House, a professor of professional practice at Columbia Business School. "People are being very prudent with every penny they spend, and they have to be because costs have gone up so much while incomes have been playing catch-up."

The 2024 Olympics officially kick-off tomorrow in the City of Light, AKA Paris. If you’re like us, you’re probably wondering, do the best athletes go home with more than just a shiny piece of hardware? While the International Olympic Committee doesn’t award monetary prizes to top-performing athletes, the countries they represent will typically shell out some cash for a job well done. "The U.S. Olympic & Paralympic Committee offers "Operation Gold" payments for U.S. Olympic winners," reports Cosmopolitan. "Winners get $37,500 for winning gold, $22,500 for winning silver, and $15,000 for winning bronze. And that’s the amount an athlete earns for each medal—so let’s say you win two gold medals plus a bronze. Your total earnings would be $90,000." Other countries, like Singapore, pay much more. For many athletes, though, sponsorships are the real golden ticket.

Things That Save You Time

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Wash, dry, fold, and repeat…every weekend. HerMoney reader Alison uses this service with her local laundromat because, let’s be honest, everyone deserves more me time on weekends. "I can just drop the laundry off on Friday, pick it up on Monday, and enjoy a weekend free from doing my least favorite chore," she says.

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"During busy times of the year, we do HelloFresh for a couple of meals a week," says HerMoney reader Melanie. Not only do meal kits, like HelloFresh and many others (here’s a great roundup of some of the best) save time, but they cut down on waste, too.

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"It goes without saying that when you're driving, there are very few things you can do to multitask," says HerMoney team member Sarah. "Talking on the phone (via Bluetooth, of course…safety first), is one of them. One of my "rules" is to return any non-urgent phone calls when I'm driving. Catching up with friends is a great way to make use of drive time."

Ask Jean

Today’s question comes from Alison. She writes: How do you freeze your minor child's credit?

The reason to take time to freeze your kid’s credit is the same reason you childproof your house when they’re babies: to protect them. According to a recent report, identity theft affects one out of every 50 children and costs families nearly a billion dollars annually. Freezing your child’s credit can help guard against this.

Doing so isn’t hard, but can be a bit of a hassle. Essentially, you are asking the credit bureaus to create and then freeze a credit report. Each of the three major credit bureaus has a slightly different process. Thankfully though, there’s a way to minimize the work you have to do. Start by gathering three copies of:

• Birth certificates (yours and the child’s if it is your child). If you are a foster parent or guardian, you’ll need a document that authorizes you to act on the child’s behalf.
• Social Security cards for you and the child
• Your government-issued ID
• A utility bill, bank statement or insurance statement that includes your name and address

Then, you’ll have to:

• Fill out this form for Equifax
• Fill out this form for Experian
• Draft a letter to TransUnion requesting a "protected consumer freeze" (We got you. Here’s a letter you can print and sign.)

The forms and letter contain the addresses you need. Consider sending this sensitive information by registered mail.

You should hear back from the credit bureaus (typically a week or so after they receive the necessary documents) confirming the freeze is in place, and with instructions for establishing a PIN or password to unfreeze it. Keep that in a safe place, but also understand that if you should lose it, your child won’t be cut off from credit forever. Even without the credentials, they can unfreeze it at age 18, once they verify identity with the credit bureaus.

Submit your questions to Jean here.

More For You To ♥

🎧 Catch up on our latest podcast episodes here. The HerMoney Podcast is made possible by Edelman Financial Engines.

🤩 A special opportunity from HerMoney. If you’ve ever wanted to try our 8-week financial coaching program, but have stopped short due to time and/or resources, then here’s an opportunity for you: We’re looking for 15 people to try a new 4-week version of FinanceFixx—with a crazy good discount. The July class is full, but spots are still available for September. Grab yours here.

⌛ Women are more likely to outlive their retirement savings than men. It’s why Gainbridge® created ParityFlex™, a multi-year guaranteed annuity¹ that caters to women’s unique retirement needs. With a Guaranteed Lifetime Withdrawal Benefit and flexible withdrawals, it’s like having a paycheck for life. Plus, you’ll get guaranteed returns at 5.95% APY. Learn more here.**

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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3625086.

HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.

**This is a sponsored post

¹ Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, there may be a 10% federal tax penalty. Withdrawals may result in a surrender charge or a market value adjustment (MVA) and excess withdrawals may result in a reduction of future payments under the guaranteed lifetime withdrawal benefit. Guaranteed Lifetime Withdrawal Benefit provided so long as your account value hasn’t gone to $0 due to excess withdrawals. Annual Percentage Yield (APY) rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. ParityFlexTM, a multi-year guaranteed annuity, is issued by Gainbridge Life Insurance Company in Zionsville, Indiana.