Brian Decker, Owner, and Founder of Decker Retirement Planning joined Janeen on ABC4 Utah to talk about how anyone can get a good rate on safe money with interest rates so low.
According to Brian, right now the 7-10 year Treasury bond is about 1.7% and the 7-10 year CD rate is about 1.2%. All fixed-rate instruments are at or near historic lows; CDs, Treasuries, Agencies, Corporates, Municipals, Fixed annuities. All have terrible rates, but there is an option for retirees.
Brian asks “If you were offered 60% of the S&P 500 upside and no downside risk would you be interested?” And the answer is, Of course!
These are called Fixed Indexed annuities and the concept is great. The concept has been corrupted though by 3 things: High fees, low caps, and low participation rates.
Since Decker Retirement Planning is a math-based firm, we go through a database that shows us all the principal guaranteed options for Cash, 1-3 year, 3-5 year, and 7-10 year PG investments, and here are the winners! There are some FDIC E-Banks out there paying about 0.5%. There is a liquid portfolio they have created for clients that are yielding about 2%.
There fixed-rate investments out there yielding 2.25% for a 3 year and 2.5% for a 5 year and there are principal guaranteed investments averaging close to 7% for 7 and 10-year taxable accounts and over 6% for tax-free accounts. In short, there are a few great options left for retirees to get a good rate for their safe money!
The ONE warning – Do NOT use bond funds for your “safe money”. Low yield and they LOSE money when rates rise.
To get your free Safer Retirement Toolkit to ABC4.com/retirenow/ or call Ph# (833) 717-3030 where Brian and the team at Decker Retirement Planning are available to help you with your retirement planning questions.
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