Posted by Nickelle Leist on Mon, Sep 27, 2010 @ 01:06 PM

Many of your clients are currently sitting on the sidelines with aound $100,000 in a Money Market Account earning 0.85% (National Average on BankRate.com), and every quarter they are frustrated when the statement shows up showing their $100,000 has earned approximately $212.

Wouldn't you like to show them a statemet that shows earnings of $3,350 for the same $100,000?  It's almost 4 times as much!

Many of those same clients are risk adverse, and have generated much of their wealth by continuing to roll their money into the best rate possible at the time, & allowing the power of compounding to continue to do it's job.  They didn't create their wealth overnight, but they absolutely didn't do it with their money on the sidelines - no matter where rates were, they took what was available.  Right now, 3.35% for $100,000 is available for 7 years guaranteed and offers more interest & more compounding to create more wealth.

Check out the following source showing historical rates for AAA, Moody's Seasoned Aaa Corporate Bond Yields: 

http://research.stlouisfed.org/fred2/series/AAA?cid=119

We currently are at around 4.49%, the last time rates were this low was in 1933, and it lasted until 1960.   We're not saying it will happen again, but 27 years would be a long time to be on the sidelines.   It is powerful proof that standing on the sidelines can be costly to your overall plan.

Call us with questions.