Sentences with phrase «rate over the life of the investment»

While the market value of a floater under normal circumstances is relatively insensitive to changes in interest rates, the income received is, of course, highly dependent upon the level of the reference rate over the life of the investment.

Not exact matches

Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a measure of inflation expectations over the life of the project and a premium to compensate for the investment's risk.

I've often called it the Iron Law of Valuation: the higher the price you pay today for a given stream of future cash flows, the lower your rate of return over the life of the investment.

No single investment must last for the entire span of the investor's life, because the investor ideally has a diversified portfolio of several dividend - paying companies, but the better the investments perform over the long - term, the lower the turn - over rate of the portfolio needs to be.

Whole life policy returns are conservative and based upon the insurance company's pool of extremely conservative investments and thus are guaranteed at rates which have been relatively consistent over the last 200 years.

Whereas whole life insurance provides fixed rates of return on the account value, at rates determined by the insurance company, variable life insurance provides the policyholder with investment discretion over the account value portion of the policy.

Let's assume both of their investment accounts grew at the historical average return rate of the S&P 500 over the life of the investment.

There three different variable life insurance policies and a choice of over 50 underlying investment options or a fixed rate option.

If you own a 10 - year bond, rates could rise multiple times over the life of the investment, pushing the security's price down with each increase.

Forecasting what may most likely happen with these factors over time (given the assumed fluctuations in the markets - which you can control every year by using different rates of return on every investment for every year - including negative rates of return, and being able to change your income goal every year) is much more important to model, than a one - dimensional probability number, to an actual investor's life.

An income annuity is not an investment that provides you with a rate of return over a fixed period of time, like a CD.2 Rather, it» «s an income product that provides you with fixed monthly income that is guaranteed for life — no matter how long you live — and no matter how the markets perform.

So like Florida term life insurance you have insurance coverage, but you also have an investment, or «cash value», that accrues over time and usually gets a small rate of interest.

According to a Lamar University study, the rate of return over time on an indexed universal life policy was higher than some other investment vehicles, such as Treasury bonds.

If life insurance will be a part of your long term financial and retirement planning, consider the fact that financial advisers, planners, and experts have reported that, on average and over the long term, whole and term life insurance rates are comparable once you add in the fact that whole life has a cash value feature that acts as an investment.

Whereas whole life insurance provides fixed rates of return on the account value, at rates determined by the insurance company, variable life insurance provides the policyholder with investment discretion over the account value portion of the policy.

Whole life policy returns are conservative and based upon the insurance company's pool of extremely conservative investments and thus are guaranteed at rates which have been relatively consistent over the last 200 years.

For EB - 5 deals marketed through these agents, developers can expect to pay a fixed rate of interest, or preferred return on capital raised, of 5 - 8 percent annually over the five - year expected life of the investment.

The equated yield is the discount rate or internal rate of return which when applied to the income expected over the life of the investment produces a present value that is equal to the capital outlay.