It's a favourite, he says, because it spreads
around interest rate risk.
Not exact matches
These
risks are usually centered
around the
interest rate environment.
A second source of
risk would be a further sharp appreciation of the Australian dollar, which might be driven by additional
interest rate reductions
around the world to combat a weakening global economy.
Bottom line: Not only are you
risking your car if you take out a title loan, but you won't get a good deal on an
interest rate (average APRs are
around 200 % to 300 %!).
The money is still insured so I don't really
risk anything, and the
interest rates (ranging from 1 % for 9 months to 2.3 % for 5 years) seem higher than anything else with the same amount of
risk - zero - that I can find
around.
The flexible yield strategy certainly has the ability to take aggressively stance on
interest rates so we could think that maybe under a certain environment it's attractive to take a lot of
interest rate risk but that type of environment hasn't been
around for long time.
The benefit of staggering your long - term bond purchase is that even though all your bonds will mature during the same period, as you are purchasing the bonds at different periods, you will be able to get
around the times when
interest rates are high and bond values and low and buy bonds when there are no
risks.
Once you start being able to add a number of properties to your investment portfolio shop
around for loans from different lenders as you are able to spread the
risk and costs if one lender increases their
interest rates.
Researchers identified the three main investment
risks that drive uncertainty
around future consumption in retirement: market
risk,
interest rate risk, and inflation.
In both cases, because the
risk to the lender is reduced,
interest rates falls to normal loan levels -
around 10 %.
Any look back to
around 1998 - 2000 when
interest rates were higher (and important to note, inflation was low even though
rates were high) shows that other investments of similar
risk were pulling in 7 - 8 % easy.
Being a cosigner has its
risks, however (check out this handy list of «Important Things to Know When Considering a Cosigner» from SallieMae), the federal government's low
interest rates and flexible terms may be hard to beat, so if you do decide to shop
around for private loans, be sure to weigh your options carefully.