Don’t Let Low Interest Rates Stop You From Getting Competitive Interest.

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Most people are frustrated by the record low interest rates that are affecting their rates on savings such as money markets, CDs and government bonds. If you have money in any of these, there are better options. Instead of 0%, learn how to get a short term rate of 2.45%, or more.


What Can You Do To Get Better Returns During This Prolonged Period of Low Interest Rates?

Why not consider a 200 year old alternative where everything is guaranteed and currently offers a fixed rate of 2.45%. It is short term, liquid and the income is not taxable until it is withdrawn, unlike other investments which tax the minimal growth each year. This option gives you a real chance of getting tax deferred, compounding interest.

With the Federal Reserve signaling that benchmark, short term interest rates would likely be held near zero until 2023, many may be reminded of the period following the last recession, which lasted for seven years. The Wall Street Journal, September, 2020

Maria Bartaromo just predicted that rates will not rise until 2025! At this point, we have to believe the Fed about rates. Zero percent interest is punishing savers. Some banks have announced they will soon be at NEGATIVE RATES. With traditional investments paying zero percent, better options quickly come into focus.

We help consumers locate better solutions. For example, one short term option is an indexed annuity that is liquid and currently paying a GUARANTEED ANNUAL RATE of 2.45%. The advantages are:

  • 100% liquid. 100% guaranteed.
  • 2.45% fixed rate of return.
  • More than 2.45% is possible by allocating to the indexed funds, without taking any principal risk. The index rates are NEVER less than 0%.
  • All gains are kept and can never be lost.
  • No principal risk; no market risk.
  • No surrender charges; small market value adjustment on early year surrender can be positive, or negative.
  • Tax deferred.
  • Protected by multi-billion-dollar insurance companies with superior ratings.

Financial Engineering: Instead of using indexed annuities with built-in commissions, we utilize fee based alternatives to boost the returns and the early year liquidity. This is state-of-the-art value creation, leading to better returns. Alternatives like these minimize the individual risks and maximize safe, upside potential.

Annuity AlternativeMoney MarketSavings AccountCDsBonds
Bond Fund
2.45%Less than .02%Less than .02%Less than .02%Variable
LiquidLiquidLiquidLess LiquidLess Liquid
Tax DeferredTaxableTaxableTaxableDepends
GuaranteedGuaranteedGuaranteedGuaranteedNot Guaranteed
Up to 5% with no risk.Current rate Less than .02Current rate Less than .02Depends on DurationDepends on Duration

What makes this annuity alternative so much better?

Individual investors can not match the investment skill or the investing scale of insurance companies. With the brightest investment people working 24/7 for your money, these teams are investing billion dollar portfolios. As individual investors with less to invest, we cannot commit the necessary attention to our own investments. This option creates a partnership between you and the insurance company allowing you to transfer all the risk to them. It’s win/win money management because you share in the upside when markets are up, without taking any principal risk.

How Much Interest Can I earn? Many people choose the fixed account rate that is currently paying 2.45%. Others choose one of the indexes linked to the S&P which puts you in position to earn as much as 5%. And others choose a blended approach that creates some guaranteed income plus potential for double the guaranteed rate. Higher interest rates are achieved without any principal risk. Net of fees, the returns are far superior to savings accounts, money markets and fixed income products. Furthermore, taxes are deferred and creditor protected.

We are facing the real probability of negative savings rates. Imagine paying a bank to hold your money? It doesn’t seem possible but neither did zero percent interest rates seem possible a few years ago.

If you find better rates in the future, you can liquidate without surrender penalties. However, higher rates elsewhere will likely mean that insurance companies are increasing their fixed rates in order to remain competitive.

We sell security, not securities.

Let us help you plan for this low yield crisis. Learn about these successful strategies by taking a complimentary phone call or requesting a customized quote. For more information about short term solutions, click here:

Start the ball rolling by simply filling out the contact form on this page or any page of our website. You can reach us at 561-771-4647 or 561-869-4500.

How long will interest rates remain low, click here:

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Ted Bernstein

Dedicated to helping people create the ultimate retirement security and protection plan to safeguard their families and businesses. I stress guaranteed income solutions, indexed annuities and state of the art wealth preservation strategies. As the innovator of life insurance products without commissions, my recommendations are impartial, objective and always in the best interests of my clients.

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