Showing posts with label guaranteed interest rates. Show all posts
Showing posts with label guaranteed interest rates. Show all posts

Saturday, November 9, 2013

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!