Millions of Americans are frustrated by record low interest rates and how they are affecting your savings and your retirement plan. Whether you have money in CDs, money market accounts or government bonds, there are better options. Instead of accepting 0%, we can help you can get at much higher guaranteed interest, without giving up safety or liquidity.
Get Better Returns During This Prolonged Period of Low Interest Rates.
Why not consider a 200 year old option where everything is guaranteed and currently offers fixed rate near 2.5%? It is short term, liquid and the income is not taxable until it is withdrawn, unlike other investments which tax the minimal growth each year.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
Zero percent rates are punishing savers. CNBC predicted that rates will not rise until 2025! At this point, we have to believe the Fed about rates. Some banks have announced they will soon be at NEGATIVE RATES.
We help consumers locate better solutions. For example, indexed annuities are liquid and currently paying GUARANTEED ANNUAL RATE near 2.5%. The advantages are:
- 100% guaranteed.
- More than 2.5% 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.
- Minimal surrender charges; small market value adjustment on early year surrender can be positive, or negative.
- Tax deferred.
- Protected by a contract from highly rated insurance companies.
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 Alternative||Money Market||Savings Account||CDs||Bonds |
|~2.5%||Less than .02%||Less than .02%||Less than .02%||Variable|
|Liquid||Liquid||Liquid||Less Liquid||Less Liquid|
|Up to 5% with no risk.||Current rate Less than .02||Current rate Less than .02||Depends on Duration||Depends 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 to grow and protect your money, insurance companies are investing billion dollar portfolios. As individual investors with far less to invest, we cannot commit the necessary attention to safeguard our own investments in the same way. 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 principal is 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 also increasing their fixed rates in order to remain competitive.
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:
Also published on Medium.