The Insurance Doctor
  • linkedin
  • Home
  • Services
  • Articles / News
  • About Us
    • Robert Intelisano
  • Testimonials
  • Contact

Rising Interest Rate Opportunities!

You are here:Home » Uncategorized » Rising Interest Rate Opportunities!
Rising Interest Rate Opportunities!

Interest rates have been around since the dawn of civilization!  They can be traced all the way back to 3000BC.  It didn’t take long for people to realize the importance of interest rates as a critical part of the borrowing and lending equation. 

Interest rates have changed significantly since back in the early days when a 20% rate was a fairly common occurrence.  These days, interest rates that high would cause mass panic. 

The Federal Reserve sets interest rates in this country and the benchmark rate is called “The Federal Funds Rate!”  This is the rate that banks charge other banks to lend Federal Reserve funds to each other for overnight borrowing.  This rate must be manipulated for time to time, moved lower to stimulate growth or moved higher to curb inflation.

The reason this matters so much is because of the ripple effects of the Federal Funds Rate.  The FFR affects the Annual Percentage Rate (APR) on credit cards, home equity lines of credit, auto loans, mortgages, Certificates of Deposit (CDs) and savings account rates just to name a few. 

If you look at the history of the Federal Funds Rate, it was at ZERO from 2008-2015, and again at ZERO from March 2020 to early 2022.  Lowering this rate helped stimulate economic growth and triggered the real estate and refinance boom over the last 2-3 years.  Real estate is starting to cool now that mortgage rates have doubled this year. 

You might be asking yourself, what does this all mean?  The Federal Open Market Committee (FOMC) meets every 6 weeks to evaluate rates.  They have never been this transparent as they have stated there will be several more increases this year and possibly the first quarter of next year.

 This means, for conservative investors, there will soon be a major “Safe Investment Opportunity” to lock into these higher “Fixed Annuity Interest Rates” for multiple years! 

Fixed Annuities are issued by insurance companies as an alternative to bank Certificates of Deposits (CDs).  Fixed annuity rates were under 1.9% earlier this year, and in New York State the 5-year and 7-year Guaranteed  Fixed Interest Annuity Rates are currently returning over 4%. 

Annuity rates could reach 5% by the 4th quarter of this year or the first quarter of 2023, which would be a good time to lock them in for years going forward! 

See below to read my Lucky 13 Advantages of Fixed Rate Annuities:

  1. Guaranteed Interest Rates: You know exactly how much money you have at the end of the term.
  2. Guaranteed Principal: Your principal is protected regardless of market conditions or company performance.
  3. Interest Rates: Higher than CDs, bonds, or T-Bills.
  4. Tax Deferred:  You do not pay income taxes until you start withdrawing funds which allow for faster accumulation hence providing you with greater income.
  5. No Fees:  You pay no annual management fees while funds accumulate and no fees on death benefits to heirs.
  6. Protected From Creditors: If you get sued creditors cannot go after/attach fixed annuity funds.
  7. Bypasses Probate: Fixed annuity death proceeds bypass probate hence they are private, saving on estate fees and going directly to named beneficiaries outside the will.
  8. Lifetime Income Options Available:  At any time your annuity may be converted into an income stream you cannot outlive.
  9. Annual Withdrawal Options Available:  Most fixed annuities allow for 10% annual no fee withdrawals.
  10. Annuitization: This unique annuity feature allows the policyholder take a guaranteed income for life and/or a period certain, and have a portion of the income excluded (an exclusion ratio) from taxation.
  11. State Protection: Should the annuity insurance company become insolvent, there are state protections (depending on what state you are in) with limits between $250,000-$500,000 in most states.
  12. Piece Of Mind:  Annuities are secure and offer peace of mind to account holders knowing they are safe from harm’s way.
  13. Lowers Your FAFSA Score: For those parents with college bound students looking to qualify for merit-based (FREE) endowment money, repositioning parental asset into FAFSA-friendly Fixed Rate Annuities can lower your FAFSA score by almost $6000 for every $100,000 moved out of non-FAFSA friendly financial vehicles.

My firm has over 20 years of experience with Fixed Interest Rate Annuities and we have access to over 100 insurance companies to shop interest rates for clients.  For those “Financial Wave” readers interested in learning more about major opportunities coming soon for “Fixed Interest Rate Annuities,” feel free to reach out to me at Rob@InsuranceDoctor.us. 

See below to read my Lucky 13 Advantages of Fixed Rate Annuities:

  1. Guaranteed Interest Rates: You know exactly how much money you have at the end of the term.
  2. Guaranteed Principal: Your principal is protected regardless of market conditions or company performance.
  3. Interest Rates: Higher than CDs, bonds, or T-Bills.
  4. Tax Deferred:  You do not pay income taxes until you start withdrawing funds which allow for faster accumulation hence providing you with greater income.
  5. No Fees:  You pay no annual management fees while funds accumulate and no fees on death benefits to heirs.
  6. Protected From Creditors: If you get sued creditors cannot go after/attach fixed annuity funds.
  7. Bypasses Probate: Fixed annuity death proceeds bypass probate hence they are private, saving on estate fees and going directly to named beneficiaries outside the will.
  8. Lifetime Income Options Available:  At any time your annuity may be converted into an income stream you cannot outlive.
  9. Annual Withdrawal Options Available:  Most fixed annuities allow for 10% annual no-fee withdrawals.
  10. Annuitization: This unique annuity feature allows the policyholder to take a guaranteed income for life and/or a period certain, and have a portion of the income excluded (an exclusion ratio) from taxation.
  11. State Protection: Should the annuity insurance company become insolvent, there are state protections (depending on what state you are in) with limits between $250,000-$500,000 in most states.
  12. Piece Of Mind:  Annuities are secure and offer peace of mind to account holders knowing they are safe from harm’s way.
  13. Lowers Your FAFSA Score: For those parents with college-bound students looking to qualify for merit-based (FREE) endowment money, repositioning parental assets into FAFSA-friendly Fixed Rate Annuities can lower your FAFSA score by almost $6000 for every $100,000 moved out of non-FAFSA friendly financial vehicles.

My firm has over 20 years of experience with Fixed Interest Rate Annuities and we have access to over 100 insurance companies to shop interest rates for clients.  For those “Financial Wave” readers interested in learning more about major opportunities coming soon for “Fixed Interest Rate Annuities,” feel free to reach out to me at Rob@InsuranceDoctor.us. 

Recent Posts

  • Real ID = Real Hassles?
  • 23andMe Data Breached!
  • Funflation is Here!
  • Gift Card Mania & Return Policies
  • Package Theft Insurance?

Recent Comments

  • Vivianne and Jonathan on 10 Interesting Facts about the U.S. Tennis Open
  • Alojamiento web on 5 Mistakes to Avoid When Applying for Your Student’s Financial Aid
  • Jim Canavan on 4 Fun March Madness 2016 Questions

Archives

  • May 2025
  • April 2025
  • March 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • January 2017
  • December 2016
  • November 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • July 2014
  • March 2014
  • November 2013
  • June 2013
  • November 2011

Categories

  • 529 college savings plan
  • activities
  • Affordable Care Act
  • aging
  • annuities
  • Australia
  • Auto
  • Auto Insurance
  • baseball
  • basketball
  • Belmont Stakes
  • budget
  • California
  • career
  • casualty insurance
  • children
  • coffee
  • College Funding
  • College Planning
  • Consultation
  • coronavirus
  • COVID-19
  • credit
  • Disability Insurance
  • Donald Trump
  • economy
  • employers
  • FAFSA
  • family
  • family leave
  • Federal Student Aid
  • Film & Entertainment
  • Finances
  • Financial Aid
  • financial planning
  • fitness
  • food
  • football
  • goals
  • golf
  • government
  • hanukkah
  • health
  • Health Insurance
  • healthcare
  • holidays
  • Home
  • Homeowner's Insurance
  • hurricane
  • income tax refund
  • inflation
  • Insurance
  • Investments
  • Italy
  • leisure
  • Liability
  • Life
  • Life insurance
  • London
  • Long Term Care
  • lottery
  • marriage
  • natural disaster
  • new year's
  • New York
  • nutrition
  • Obama Care
  • olympics
  • Paycheck Protection Program
  • Planning
  • premium finance
  • privacy
  • professional
  • Queens
  • Radio
  • Real Estate
  • resolutions
  • Retirement
  • same sex couple
  • school shopping
  • self employment
  • shopping
  • small business
  • sports
  • taxes
  • tennis
  • travel
  • Uncategorized
  • UNICO
  • US Open
  • vacation
  • veterans
  • wages
  • wellness
  • WRNW

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
back up
© Intelisano & Associates All Rights Reserved