The downside to low interest rates.

Low interest rates are good for mortgages and hopefully for credit cards (unfortunately many credit cards companies don’t tend to give us the breaks).   We can definitely use low rates to our advantage by properly setting up our finances with a good equity repositioning stategy.

But unfortunately there are also some negative consequences for people who are trying to save money in CD’s, Money Markets and Savings Account.  As interest rates fall the rates of return on these will fall as well. A CD paying 3.5% is not even keeping up with the cost of living. You are basically going broke safely. 

A better way is to use the equity index products we talk about. You get the guarantees and safety of a CD with the upside potential of the stock market.  Learn more about getting upside stock market potential without risk under the safety section of our website.

Here is a very informative article on the downside of rate cuts.

What inflation means to all of us.

We have heard recently for 2007 inflation is up by the largest amount in 17years.  Of course we are all aware of the 29.6% increase in Gasoline prices, but some other big increases came in food price.

Raw food prices are up 24%, dairy products are up 14% and even bread is up 8.1%.  These are the type of expenses we feel in our pocket book every day. Worse, all indicators are showing that food prices will take another big jump in 2008. 

The bottom line is more strain on our pocket books which makes it harder to save for retirement. This makes it more important than ever to use your existing income and assets in the most efficient way possible. Check out our section on equity repositioning and the new home ownership accelerator.  It could help you save thousands of dollars in interest without changing your spending habits.  This could help you offset rising prices and build funds for retirement.

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