Why Interest Rates Are Low And Will Stay That Way

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

Well, at least for a while.

The simple answer is this, the lower the interest rate, the lower the payment obligations.  Based on that concept…..

America has successfully refinanced its national debt from higher interest rates to lower interest rates.  88.5% of all national debt is now 10 years or shorter.  This is good for us as a nation; less interest that needs to be paid means less federal budget restraints.

The yield on the 10 -year Treasury note closed at 1.36% on Friday (7/08/21), the lowest closing yield since 1790.

What is bad for our nation is the continuing deficit, which seems to be out of control.  Whether it is democrats or republicans in charge, it just grows.

Now, heading towards us like a freight train is the Baby Boomer Generation; we all need our social security and Medicare.

How will that obligation be funded?

The government must keep the interest low to keep the deficit low; interest payments on the national debt last year were $348 billion, which was down from previous years. It was NOT that the deficit reduced; it was the fact that the interest rate was far less.  In fact, 2021 was the lowest interest amount paid since 2006.

What does that mean for us as annuity salespeople?  It is fairly simple; as long as an administration insists on keeping a stranglehold on the economy, interest rates will be low.  Once the Federal Reserve begins increasing interest rates, the government will be forced to offer more debt auctions.

Then we will see two things happen:

  1. Annuity rates will strengthen and
  2. The country’s national debt interest payment will increase.

Good or bad?

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

View The Best Annuity Rates Available Now

Annuities are a safe and reliable investment. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

Our unique system of “Pooled and Shared” articles by our authors, our outside contributors, and writing assistants provides efficiency, enhanced collaboration, and greater topic accessibility. This allows for a better utilization of content and productivity while delivering meaningful content to our readers.

Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

Share This Entry:

In This Article

Protect Your Retirement

Our 20th edition of The Safe Money Guide, the standard of the industry.

Recent Posts

Archives