03/29/2006
Oops, they did it again.
The Federal Reserve concluded its first Open Market Committee meeting under new Chairman Ben Bernanke yesterday with another quarter-point interest rate hike, the 15th consecutive quarter-point increase since June 2004. The Fed's action now puts the federal funds rate (the interest that banks charge each other on overnight loans) at 4.75%.
It seemed as though the new Fed chief stuck to the talking points of his predecessor, saying that the economy "rebounded strongly" in the January-to-March quarter, and that was cause for concern about the potential for inflation flaring up.
The official language of the Fed's statement didn't deviate one iota from their last meeting at the end of January with Mr. Greenspan at the helm, as the statement read, "The committee judges that some further policy firming may be needed." Well, Wall Street read that as a sign of more tightening to come, and as a result stocks sold off and bond yields rose.
Now I've mentioned to my Making Money Alert readers in the past that I thought there would be at least one, and probably two, quarter-point rate hikes to kick off the new Bernanke era, but after that things wouldn't be so clear. I'm sticking with that call, but of course we'll find out soon enough as the next Open Market Committee meeting is set for May 10.
Now despite yesterday's post-Fed selloff, the markets have been performing well lately. Two particular areas of the market I've been watching very closely are gold and energy. Fortunately, both gold and energy are easier to own than ever before through the use of exchange traded funds (ETFs).
In fact, in my both my Successful Investing and ETF Trader services, I am recommending energy ETFs, and in my ETF Trader service we also have an allocation to gold.
Do you want to find out how to profit from the moves in both of these sectors? Would you like to feel confident that you'll be protected no matter what happens with interest rates, and no matter what direction the stock market takes?
If so, I invite you to check out my Successful Investing and ETF Trader services. Both of these services offer specific ETF recommendations based on our market-beating trend following system, a system that protects your wealth in bad times and let's you maximize profits when the getting is good. For more information, please click on the links below:
http://www.fabianssuccessfulinvesting.com/order.php?offer=12
https://www.fabiansetftrader.com/order.php?offer=18
Today's challenging investing environment makes for some pretty skeptical variable annuity investors. While many desire the tax deferral a variable annuity offers, they may have become frustrated with commissions, fees and lack of compelling investment choices that have made their annuity underperform in a broad market.
A competitive and challenging marketplace has made thousands of retirement investors intolerant of the status quo of annuity investing and has paved the way for a revolutionary new breed of annuity to emerge into the forefront of tax-deferred retirement investing.
Today's annuity investor demands a versatile investment tool, one that offers unlimited online trading in the investment options that can long or short the market, and also one that has no commissions, loads, withdrawal charges, or excessive fees. Now available through Ameritas Direct is just such a unique offering - The Genesis No-Load Variable Annuity (NLVA) issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp.
The Genesis NLVA is a joint collaboration between two well respected, innovative, and cost-efficient names in the financial services industry. Ameritas Direct, the no-load insurance pioneer has teamed up with ProFunds to give you unlimited, online trading with 20 diverse investment options, all managed by ProFund Advisors LLC. The fees are some of the lowest in the industry and Ameritas charges no load, no commissions, and low fees so your annuity can pack as much punch as possible. And because you're investing already taxed dollars, there is no IRS limit on how much money you can put into your annuity. As a security, variable annuities have investment risk including the possible loss of principal.
A common complaint among variable annuity holders is that their investments have simply been forgotten. Individuals who were sold a variable annuity lament that no one is monitoring how their investment options are performing anymore because there's no financial incentive to do so; it just simply falls off the radar.
Here's some food for thought: instead of paying commissions, why not just buy your annuity direct from the provider and proactively manage the investments yourself? I'll bet you'll find that by eliminating unnecessary fees you will go a long way toward improving how much money is left with the potential to grow. And the Genesis No-Load Variable Annuity offers you the trading flexibility of 20 diverse and high-quality ProFunds investment choices that offer several options for every type of investor in every kind of market. Most ProFunds investment options routinely employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value and all are subject to active investor risk.
The approach you choose regarding the management of your annuity is your personal decision. However, irrespective of that outcome, the Genesis No-Load Variable Annuity is a low cost investment vehicle that can be employed in either of the two scenarios: individual or professional management. The insurance expense is just .90%, guaranteed never to increase, and there are no annual maintenance charges. Investment options carry their own expenses.
I can honestly say that this product is like no other I have seen offered. In fact, its very name, "Genesis," connotes a "coming into being" and, I must say, it is aptly named. Like all of the other Ameritas offerings, Genesis charges no load, no commissions and has low fees. Genesis NLVA gives you unlimited trading opportunities with no current tax consequences so you can follow the markets to trade in and out of the funds that will perform best in a shifting market climate. This product has the potential to turn an otherwise stodgy and stagnant investment tool into a growth opportunity—all tax deferred. Gains are taxed as ordinary income when withdrawn and a 10% penalty may apply to withdrawals prior to age 59 ½.
Are you ready for a re-birth of your variable annuity? The Genesis No-Load Variable Annuity is the next generation of variable annuities designed to give active investors a powerful edge to capitalize on the tax benefits a variable annuity affords while providing the flexibility savvy traders demand.
I encourage you to learn how you can put the Genesis No-Load Variable Annuity to work for your investments by contacting Ameritas Direct at 800-555-7746 today for more details, or simply visit them on the web at http://genesisannuity.com. Read the prospectuses carefully before investing.
Genesis No-Load Variable Annuity (form 6151) is issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Portfolio management by ProFund Advisors LLC through subaccounts of Ameritas Life Insurance Corp. Ameritas Investment Corp. and ProFund Advisors LLC are not affiliates.
DO YOU HAVE ANNUITY QUESTIONS OR CONCERNS?
I know the subject of annuities can bring up a lot of questions. So, if you have any specific questions about your annuity you'd like me to answer, please write me at:
"For most of human history we have searched for our place in the cosmos. Who are we? What are we? We find that we inhabit an insignificant planet of a hum-drum star lost in a galaxy tucked away in some forgotten corner of a universe in which there are far more galaxies than people. We make our world significant by the courage of our questions, and by the depth of our answers."
-- Carl Sagan
Are you asking yourself the courageous questions about your financial lives? Or are you, like so many people, unwilling to face the reality that managing your money successfully is essential to a life well-lived?
Wisdom about money, investing and life can be found anywhere. If you have a good quote you'd like me to share with your fellow Making Money Alert readers, send it to me, along with any comments, questions and suggestions you have about my radio show, newsletters, seminars, or anything else.