Ferenc Toth is founder of Your Personal Bank TM. He is passionate about helping people gain control of their money, create tax-favored income, and having access to more funds over their lifetime! Ferenc is a voice for common sense. He cuts through the noise to help us understand how current events affect our money, economy, and our freedom.
Growth is slowing. Prices continue to surge. This leads to stagflation. This is a nightmare scenario for the economy.
This places the Federal Reserve in a very difficult situation. If they lower interest rates, inflation will increase. If they increase interest rates, the economy will slow down further.
The US economy has not faced Stagflation since the 1970’s. Stagflation is bad for the stock and real estate markets. Look at a stock market chart from the 1970’s. It was an ugly decade.
This is the reason the Federal Reserve held interest rates and reiterated “higher for longer”. Wall Street and the legacy media is finally coming to realize that the Federal Reserve is unlikely to cut interest rates through 2024 if not longer.
Wall Street may be surprised that the economy is slowing, but main street is not. Anyone who buys food in the grocery store or buys gas understands this. I have been sharing this for over a year.
Interest rates have increased significantly and are likely to remain for an extended time.
The economy has changed. It is time to increase interest rate sensitive assets in your portfolio.
Your Personal Bank dividends are insured, tax-free, with guarantees, highly liquid, and are likely to increase for the next 5 -10 years due to higher interest rates.
Index annuities provide double digit upside potential in good market years, with no downside risk, and tax-favored. Many of the better index annuity average returns have ranged from 6 – 11% 10 year average annual returns over the past 20 years. They are back in favor and are likely to provide strong returns for the next 5 -10 years due to higher interest rates.
Insurance companies provide Your Personal Bank policies and annuity products. Insurance companies are more profitable in a normal to higher interest rate environment. If interest rates remain “higher for longer”, Your Personal Bank policies and annuities will pay higher returns.
I believe we are in for a chaotic year and a bumpy economic ride this year. It would be wise to protect your assets. Diversify. Reduce your risk. Reduce your tax liability. Increase returns safely. Increase liquidity to take advantage of future opportunities.
When the government spends more than it receives, it has to sell bonds to off-set the currency. As long as the federal government continues to print money, bond interest rates will remain higher. Currently, there is no political will to reduce spending.
The federal government’s excess spending creates an opportunity. Insurance company dividends are highly interest rate sensitive. Dividends are expected to increase for the next 5-10 years. You earn dividends insured, guaranteed, tax-free and highly liquid. You can take advantage of the government’s financial irresponsibility.
