Bill Gross Finally Agrees With Me

Bill Gross Finally Agrees With Me

October 2, 2013 – For years, I have been working hard to help clients temper their enthusiasm about the prospects of interest rates rising significantly anytime soon.

Even though I wish the message were different, it’s somewhat gratifying when a world renowned “bond king” finally seems to agree with what I’ve been saying for some time:

Interest rates are pretty much going to linger in their current comfort zone for some time.

jamesBondHere’s the headline and link to the article about the bond, not James Bond, king’s views on the subject from today’s CNN/Money:

Bill Gross: Get used to low rates ‘for decades’

You heard the man. For decades!

Regular visitors to our website and subscribers to our newsletter may recall us sounding this bell four years ago in our September 24, 2009 newsletter with the rather straightforward caption, “Historical Interest Rates.”

You’re a little late to this party, Bill.

When I founded Finn Financial Group in 2009 with the commitment to helping clients achieve long-term financial security, I knew I wanted to do more than simply give someone a structured settlement or annuity policy every once in awhile and send them on their merry way.

I wanted to be a source of trusted advice based on sound, quantifiable research and analytics so they could feel confident when making choices about their future.

In truth, I’m no more or less prescient than the next person since nobody can ever really know what the future holds.  Bill Gross has sure been wrong before.  But I do firmly believe more information is better than less information and I work hard to help people plan for a safe and secure future.

Impact on Structured Settlements and Annuities

Though it may seem counter-intuitive, all this actually bodes quite well for the structured settlement and annuity industries.

In fact, here are two important take-aways from today’s lesson as it relates to these two themes if you accept, as I do, rates are in the range they’re likely to remain for awhile:

Lesson One:  Don’t reject a structured settlement or annuity simply because you believe rates are “too low.”  Factoring in safety, security and tax advantage, the rates are superior to everything else out there of comparable risk in most instances.  And anything you’ll likely be able to find as an alternative in the near future.  (“Near” being relative if we’re talking about decades)

Lesson Two:  If you are anticipating a taxable settlement or attorney fee of any meaningful size, you can be EVEN MORE CONFIDENT that structuring makes sense for you.  That is, unless you enjoy giving away money you could easily keep for yourself.

All this, by the way, assumes the only reason to choose a structured settlement or annuity is rate of return.  When factoring in happiness, peace of mind, security and other more subjective benefits, the desirability of these options becomes even more pronounced.

But that’s a conversation for another day.

Meanwhile, Bill, if you’re reading this, maybe you and I can get together for lunch one of these days to compare notes on this and similar subjects?  Since your PIMCO headquarters is walking distance from mine, we could pull it off pretty easily.

Heck, I’ll even spring for the Bill if you agree to get the TIP. 

(All puns in this post inspired by Leonard Pinth-Garnell)

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