Interest Rate Perspective

Interest Rate Perspective

HistoricalLongTermInterestRatesOctober 10, 2013With all this talk about quantitative easing, shutdowns, debt ceilings and similar esoterica, it’s easy to lose perspective about interest rates.

True, interest rates might seem low by historical standards but it really depends on your frame of reference.

That’s why we created this one-page flyer for you:  Historical Long-Term Interest Rates

Taking a broader view of history, many people are shocked to learn that precedent exists which makes very real the possibility that interest rates probably aren’t going to be heading too far north anytime soon.

Oh, sure, they’ll probably go up.  Then again, they may go down.  But whatever they do, history is telling us there’s a very good chance they’re going to remain in their current range for awhile.  Possibly for an entire generation.  “Bond King” Bill Gross recently said as much. 

Truthfully, though, only time will tell.

But while bond traders may obsess about interest rate changes, making and losing small fortunes along the way, people who have the opportunity lock into one of the most highly secure, tax-advantaged opportunities ever conceived (aka a structured settlement annuity) should ask themselves one very important question:

“What else am I gonna do with this money?”

If your needs are very short term, then choose cash.

But if you’re seeking safety, security and superior COMPARATIVE rate of return for long-term financial stability, nothing can match the benefits of structured settlements.

When put into place for a personal physical injury, all principal AND interest is 100% income tax-free making the comparative yield significantly better than most bonds.

When a structured settlement is chosen for a personal non-physical injury, all proceeds, principal and interest are taxable; however, because interest is earned on pre-tax dollars otherwise lost in the year of dispersal, the comparative yields can be up to 4-times better than anything else the individual can find without assuming significantly more risk.

This is why so many smart attorneys choose to regularly structure their attorney fees, by the way.

So I hope you find our flyer helpful as you plan for your future.  While you’re at it, check out the entire new BROCHURE section of our website where you can find lots of helpful information in easy-to-read pamphlets.


Finn Financial Group