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Jan 14, 2025

Insurance dividends are 6%+ while policy loan rates are 5-5.3%. Dividend rates currently average about 1% higher than the cost of borrowing.
 
Dividends are expected to increase for the next 3-5 years if not longer.
 
Many financial experts are calling this the "golden age" of fixed investments.
 
Even if the Trump administration does everything right, some problems will take a while to fix. Debt is a major challenge.
 

Record levels of debt requires record selling of bonds. This pushes bond interest rates higher. 

Until the government starts paying down debt, bond interest rates will remain elevated.

 
 
When bond yields (interest) increase, institutional investors tend to move out of the stock market and into the bond market.
 
Many institutional investors like banks, insurance companies, and pension funds are focused on obtaining steady consistent cash flow to pay their liabilities than accumulation. These large institutional investors have the ability move markets.
 
Historically, when the 10 year bond approaches a 5% yield, the stock market typically declines. The 10 year bond has recently increased to 4.7%.
 
Mortgage rates are affected more by the 10 year bond than the Federal Reserve. 30 year fixed mortgage rates are typically the 10 year bond rate plus 2-3 points. Increasing bond rates equal increasing mortgage rates. We will likely see 8% 30 fixed mortgages as the norm soon.
 
Blackrock, Goldman Sachs, JP Morgan, and Vanguard analysts all predict S&P 500 index returns will average 3-5% annually for the next decade.
If the analysts are correct, Your Personal Bank dividends, annuities, and guaranteed lifetime income will all outperform the S&P 500 over the next decade without market risk and tax-favored.