'Nak ditelan pahit, nak dibuang sayang, jadi kita kulum saja' - Adnan Yaakob
Guaranteed Interest Rates - Are You Looking for Security?
Guaranteed interest essentially means that you would be paid interest at guaranteed interest rates. Whether it is Federal bonds or fixed deposits in banks, your interest rates remain fixed and guaranteed. The Government guarantees the interest rates in the first option, whatever may be the situation, you would get your interest at the guaranteed rates. Similarly, the banks guarantee interest rates on fixed deposits irrespective of whatever their profitability is. To the ordinary investor who hates looking beyond the rates paid, this is an excellent option. Guaranteed interest rates mean that an investor has one thing less to worry about in these difficult financial times.
To the average American however, this would mean nothing. He or she is not looking for guaranteed interest rates at this point of time, what is needed now is maximum returns on investments. This means that there are a whole set of risks involved. To the average American, it still makes sense. A mere 3% or 5% return on investments does nothing to get you past the inflation barrier. You are still working harder than ever before to make your payments. Earnings and salaries are never connected with economic indicators. This means that you have mounting debts and interest payments to take care of with a limited income.
Prices are forever on the rise and overall it is a bad scenario out there for you. That is why the earning individual is ready to take risks with his or her investments. There are wide ranges of products available today that can fetch a sizeable income though there are greater risks involved. How would you go about eliminating these risks? Try out the cash value life insurance to start with. The insurance provider makes every penny run for you to get you more income from your investments, while the principal remains untouched. Higher the returns, you have some surplus available now to take care of the credit card payments.
You can now start saving for the college education for your child. Refurbish your house with replacements and repairs, which were long put on hold. You may not be getting guaranteed interest rates on your incomes, but definitely the incomes are much higher that what the bank was offering you. While choosing your financial advisor, make sure that the investment is made with an accredited financial company who knows their business very well and has a growing client base. Read some of the reviews and check on various financial forums and blogs to know more about the options available.
While your investments remain protected through the FDIC insurance cover, you would still need to see that the company you are dealing with has a sound reputation. Generally, these are old financial goliaths who have set themselves up when markets were uncomplicated. They have stood the test of time and their maturity shows in their careful investment picks to ensure higher returns to their clients. Guaranteed interest rates are for those who prefer to play safe and earn less, for those needing the extra income, taking risks are what investments are all about.
