Tags: bad | news | insurance | annuity

A Conservative and Wise Financial Choice in an Unstable Market

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Monday, 13 Apr 2015 08:05 AM Current | Bio | Archive

Every day, newspapers, web-based news sources, TV talking head shows and those in government tell investors the good and bad news.

The good news for Wall Street is that they are having a record year for profits and bonus payouts will likely be at historic levels. The government's good news is that taxes are coming in at record amounts.

So what's the bad news?

The bad news is that investors are the ones paying for all of the good news, but are going to be taking a financial bath fairly soon, most likely.

The bad news is that getting any sort of yield requires taking on insane levels of risk.

The bad news is that trading volumes are thin and securities' valuations are in the fictional zone.

The bad news is that interest rates are being suppressed near zero by the Federal Reserve and that the economic situation is getting fearful that the Treasury may soon issue its paper at negative interest rates.

The bad news is that both the Wall Street gurus and the Fed are telling investors that the country needs more inflation and that prices going down are a bad thing.

The bad news is that every dollar that hasn't been taken away from you buys less stuff — like food.

What will ultimately happen is unpredictable except to say it will be bad for investors whatever happens.

What is an investor to do?

What investors normally do when faced with financial risks is that they insure against the loss.

Many smart investors have already been repositioning their investment capital, which protects their businesses, family and their retirement into the two well-understood financial products that historically have been the safest of the fiscal safe havens.

Insurance on lives and annuities are the only financial products on the market that are mathematically based on the law of large numbers and have been tax-favored since 1913. Their sole purpose is to create an assured source of yield over a period of years or life. And it can be both interest-rate and inflation protected.

Unlike the big banks and the rest of the Wall Street casino (and the government), insurance companies focus on their primary duties, which are to stay solvent and make assured payouts on time and in the amounts specified.

When the economic outlook is as unpredictable and unstable as it is right now, investing in the financial safety of insurance or annuities may be the conservative and wise choice among possible low-risk investment alternatives.

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Kleinfeld
Every day, newspapers, web-based news sources, TV talking head shows and those in government tell investors the good and bad news.
bad, news, insurance, annuity
416
2015-05-13
Monday, 13 Apr 2015 08:05 AM
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