Singer Wealth Announces Inflation-Proof Investing Strategy
Boca Raton, Fla.–(Newsfile Corp. – June 22, 2022) – Singer Wealth, an independent financial services firm that advises investors and helps them create growth and income strategies, unveiled its new strategy for those who want to keep their money both safe and liquid. The company announced its use of no-fee life insurance contracts, which offer investors a low-risk way to achieve growth while being able to withdraw funds at any time.
As the inflation rate in the United States reached about three times the Fed’s 2% targetafter reaching a 40-year high in Maythis introduced significant risks for investors. The consumer price index rose 8.6% in May from a year ago, which means the largest increase since 1981. Previously, bank interest rates corresponded to inflation; now, bank interest rates remain low as inflation continues to rise. Singer Wealth’s insurance strategy offers investors a safe way to protect their assets against this high inflation.
A no-cost life insurance contract is characterized by the fact that no fees are deducted from the account value for the start-up or service of the policy; Comparatively, traditional insurance contracts often include initial fees and surrender fees at the end of the contract. Singer Wealth uses these contracts not only for these reasons, but also because of the lower risks presented compared to investing in bonds or stocks.
Singer Wealth executives point out that the advantages of no-fee contracts include the fact that there are no redemption fees and the money is fully liquid. In addition, no-load contracts have a guaranteed minimum interest rate of 2.5%while the insurance costs are around 1.5%; therefore, investors can be sure of earning 1% regardless of the health of the economy. Singer Wealth points out that unlike bank accounts, with no-fee life insurance contracts, investors are only taxed when they spend the funds, not on an annual basis.
Singer Wealth’s strategy can also protect clients’ finances against current stock market volatility. Recently, a The “bear market” was confirmed after the stock market fell by more than 20%. With no-cost life insurance policies, each year starts over; this means that investors see zero additional interest in negative years. However, each year starts again at the closing level of the index; therefore, unlike real stock investors, account holders do not need the index to return to previous levels before earning money again.
The tax-free death benefit was also cited by Singer Wealth as a motivating factor for using the strategy. This means that all funds are returned tax-free to the heirs upon death. Otherwise, one in five people aged 65 in America will require long-term health care for more than five years. In addition to the other benefits mentioned above, these contracts provide an additional pool of funds that can be accessed tax-free in times of need for long-term care.
As Keith Singer, owner of Singer Wealth, points out, “Bonds present both credit and interest rate risk. For example, through mid-June 2022, 20-year treasury bills are down more than 25%. Obviously, stocks can have large investments. risks and are not suitable for the part of its assets which must be safe and liquid. minimal while providing a great opportunity for secure, long-term growth in today’s challenging economic climate.”
Name: Keith Singer
Email: [email protected]
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