Unusual Passive Income Opportunities For A Low Interest Market
Where do you find safe passive income opportunities in a low interest market? EverBank offers two unique opportunities for those who seek safety but hate low interest rate certificates of deposits.
Unless you have been on a long vacation in a remote location, you surely know that banks do not pay high rates of interest on their certificates of deposits. A CD today pays less than 0.5% interest. You can thank the Federal Reserve bankers and the Obama administration.
You see, under the infamous economic stimulus plan called Quantitative Easing (QE1 & QE2), the Feds have been printing money without abandon. That money has been invested in the bond market intentionally driving down interest rates.
The goal was to stimulate the economy. It failed! People still are out of work and the future does not look like it is improving significantly. A rising stock market does not put people back to work. Until people are working, the economy will not improve significantly.
The national debt has risen astronomically. It has had a very influential effect on commodity prices.
Gold and silver have sky-rocketed. Today gold trades at $1,534 and silver trades at $48.34 per ounce. The dollar has nose-dived. The two events are related.
The dollar as the world's reserve currency may end soon, predicts Porter Stansberry of Stansberry & Associates Investment Research. (www.stansberryresearch.com)
At the checkout of your grocery store, you again note the rising prices. Thanks to your government who thinks they know better than the common man. Printing money is bad, very bad!
Gasoline costs $4 per gallon.
Now that the Fed has announced that QE2 ends June 30, 2011 what can you expect? Inflation! Interest rates will also be raised to slow the inflation that is inevitable due to the printing presses running non-stop.
Passive Income Opportunities #1
But where can you find safe passive income opportunities in this financial environment? EverBank!
Recently, I found a bank in Islandia, NY named EverBank that offers unusual ways to invest your money.
If you prefer the safety of an FDIC account, but hate earning 0.5% interest on your CD, consider investing your money in EverBank's MarketSafe Diversified Commodities CD. (https://www.everbank.com/personal/diversified-commodities-cd.aspx)
This CD is a little unusual. It gives you "deposited principal protection plus growth potential" according to EverBank. This CD is based upon ten popular commodities held in equal proportions (10%). They are platinum, gold, silver, corn, sugar, lean hog futures, soybeans, WTI crude oil, nickel, and copper.
At maturity, if the underlying commodities perform well, you will receive a payment based on the rising market and 100% of your deposited principal.
If the underlying commodities do not perform well, at maturity you will receive 100% of your deposited principal back. Your investment is also protected by FDIC.
The CD requires a minimum deposit of $1,500 for a term of five years. This CD is available for IRAs.
With current commodity prices soaring and if they continue to rise over the next five years, you should do better than most banks' interest bearing accounts.
Passive Income Opportunities #2
Here is another innovative passive income opportunity with EverBank. Invest in their precious metals account. It isn't any secret that gold and silver are currently soaring. I expect that to continue for the next few years.
EverBank also allows you to invest in gold and silver. If you invest a minimum of $7,500 in an "Allocated Storage Account" you can hold gold and silver coins or bars. This account is available for IRAs.
You can invest a minimum of $5,000 in their "Unallocated Storage Account". This account is not available for IRAs.
You can easily sell your precious metals by the ounce at any time. A check will be in your mail in a few days.
Neither of these accounts are FDIC insured. While there are market price fluctuations, I expect gold and silver prices to rise to new highs. Prices have been rising over ten years and they have a ways to go as long as the government keeps printing money.
The price of precious metals rises, in part, due to the falling dollar. Eventually, silver and gold too will fall. Nothing goes up for ever. As long as you don't buy at the top, and sell at a lower price, you should receive a significant return on your investment.
If these passive income opportunities interest you, contact EverBank at (www.everbank.com).
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