Treasury yields and stocks have more upside ahead, according to some Wall Street investors, and annuities are yielding more than ever. So if you're nearing — or already in — retirement, which offers the best source of income?
Pro speaks to the experts to find out. Stocks vs. annuities David Dietze, senior investment strategist at Peapack Private Wealth Management, recommended annuities and stocks — with some caveats. "When you're planning for your retirement are you better off with an index fund or a good paying annuity? Annuities are paying far more than they used to, with rates up," he said. But to see how attractive an annuity rate is, compare it with the rate of inflation, he said.
Pro screen of cheap stocks with safe and high dividends. But Rekenthaler of Morningstar isn't a fan of dividend-paying stocks at the moment. "While dividend-paying stocks are always a possibility for income, they have become less attractive relatively to the other options because bond yields have risen so aggressively over the past 18 months, while stock dividends have barely increased," he said.