Looking for Options:
My clients drive my searches and most recently, the request has been for a safe alternative to CD’s purchased through a traditional or non traditional bank. This intrigued me.
Why the request?
www.Bankrate.com shows national average interest rates for CD’s on 2-22-12:
1 year CD .35% APY
2 year CD .53% APY
5 year CD 1.15% APY
IS this a GOOD investment?
I cannot answer that for you, but inflation is normally calculated at 3%.
IS there an option for Safe money other than the “Banks”?
The answer may surprise you. YES, there is an alternative to traditional bank CD’s for stable and reliable growth. Insurance companies offer a product line that works similarly to a CD.
Ah, but is it secure?
Once Again, YES. Bank products are typically secured by the FDIC. A lesser known group called the NAIC (National Association of Insurance Commissioners), backs insurance products and provides protection for consumers against an insurer going insolvent.
What should I expect and with whom?
3 year MYGA (Multi Year Guarantee Annuity) at a minimum of 1.0%
5 year MYGA at 3.0% with an 8.0% GLWB (Guaranteed Lifetime Withdrawl Benefit).
These were exciting finds for me and my clients after the recent comments by the Federal Reserve, “rates will remain at this low level for the foreseeable future”.
If you would like more information on options available to you while we are waiting on interest rates to come back to