Why would anyone ever put up with earning only1.9%?

I was just reviewing Bank Rate.com  and it showed  a National Average 5 year CD rate of only 1.9%.
Why in the world would anyone want to park funds at a bank with a rate of 1.9%?  Just think about it the average  inflation rate over the last 5-10 years has been over 2.5-2.9%.  That means in December you  have lost money every year for parking money with your bank! Ouch! Your bank doesn't loose money they lend it out for anywhere between 3.9 - 19+%. Why should you loose money so the bank can make as much as17% per year on your assets.

Did you know that solid alternatives  exist?
How about the following examples.  I am going to mention just a few.
The only problem is that these rates might not last for ever.  Don't Delay!

1)  5 year fixed rate guaranteed 3.25- 3.5% per year.

2) 8 year monthly income stream paying 6%

3) Insured High yield but variable rate 7 year  product. Contractual low rate of 1.25% with an annual upside potential of up to 7 - 7.25%. If you get the maximum only  2 years out of 7 you get almost 2.8%, if you get the max 3 years out of 7 you earn almost 3.7% and if you earner the higher rate 6 years out of 7 you would earn over 44%.  Compare that to the Bankrate.com national CD  rate of 1.9% with a 5 year return of under10%.  Which should you choose?

Call or email to learn more or to determine if these strategies makes sense for some of your assets!

Market Linked CDs Information for Consumers

New financial products available

Everyone knows  that interest  rates have been  extremely low for over 3-4 years.  It's part of  the the Federal Reserve Banks plan to "help the  economy". Even with the  slight  increase in interest rate in the past week or so it is still almost impossible to  earn a decent yet safe rate of  return on  our
money.

Did  you  know  that it is possible to obtain a 6% guaranteed interest rate on a 96 month financial product. There are minimum purchase amounts of $40,000 - 60,000 with a maximumum of approximately $250,000. These are not liquid but you do  receive monthly payments including but some return of principal and  interest. Payments are level  throughout the 8 year term. The interest rate is guaranteed at time of issue and payment of the contract. There is also a high  degree of  safety with this type of contract. This is what I would consider a Safe Money product with no stock market risk. They are compatible  with a ROTH or Traditional IRA or can be used with non qualified money as well.

I think it is good  to  know that a reasonable Bank alternative is available today.  Why would anyone  want  to put that amount of money in a bank anyway?

What Happens To Bank CD Rates In A Bank Takeover

I read an interesting article today in USA Today September 29, 2008. It was titled Whats next for failed WaMu's customers? Several interesting points were made in the Q and A style article. First point as you know qualifying accounts under the $ 100K FDIC limit are federally insured. What you may not know is the point made later in the article by Charlie Scharf JPMorgan Chase Bank's head of retail business was quoted as saying Cd rates for WaMu products will remain the same "as we figure out how to merge the companies". The article goes on to state "But it is unlikely that Chase will honor the rate on WaMu's 5%CD rate through maturity" said Bankrate.com senior analyst Greg McBride. The key point here is that although the principal is guaranteed the INTEREST RATE PAID IS NOT GUARANTEED!!! OUCH!! not only do banks not pay the best rates available but if they screw up you may not even get the promised rate.

If you are thinking about buying a Bank CD or facing a rollover date now might be a very good time to consider non bank alternatives. If you are looking at 1-5 year terms guaranteed rates of close to or over 5% are available and if you are over 40 years old we can offer products with a superior guaranteed yield of 6-7.2% in a five year, a ten year or longer timeframe with the additional benefit of a 5% initial bonus credited to the principal on day one if you choose the 10 year product. These interest rates are the contractually guaranteed minimum rates and the rates can be as much as two or three times as high in good years. A percentage of the funds are available annually without penalty. At any time you can convert the account balance into a lifetime income stream you cannot outlive. In effect you can convert this into a personal pension plan at your option any time you wish. No bank CD offers you these three things Competitive minimum interest rates, significant upside potential earning and a lifetime income stream. Does this make sense for some percentage of your assets?

This product should be in your portfolio for some portion of your assets if you are qualified to purchase these products. You have to meet suitability and minimum initial contribution limits. It is not necessarily available in all 50 states. Contact us if interested.

How can we help you prepare for difficult financial times or for retirement?

www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com

new higher rate on 5 yr MYGA

brand new higher rate has been released for 5 year single premium deferred annuity. Current best rate available. Year one rate including bonus 6.70% years 2-5 guarantee rate 4.70 with a combined 5 yr rate of 5.09%. This is a tax deferred product so you get no 1099 form until you begin to withdraw money.

Understand that the rate is subject to change until policy is written. Rate usually change once a month but may occasionally change more often.

How does this compare to national bank CD rates. I checked Bankrate.com today and found the national overnight rate on a 5 yr CD was 4.15% and that compares to a rate of 4.16 last week. These rates are taxable rates and you get a 1099 form for this years taxes.