Sentences with phrase «returns than the interest»

This means you will have to find other sources of funds and then place the cash in investment instruments that potentially offer higher returns than the interest rate of your debts.

This sort of loan is an excellent option if the financial asset you are pledging has a higher expected rate of return than the interest rate on the mortgage, or when the assets you are pledging could cause you capital gains income tax grief if you were to convert them to cash.

Losing out on an opportunity cost: Before considering prepayment you should ensure that there is no other financial instrument in the market that would have given you a higher rate of return than the interest rate that you are paying on your home loan.

Also this loan is an excellent option if the asset you are pledging has a higher expected rate of return than the interest rate on the mortgage.

When you can invest money at a higher rate of return than the interest rate on your debt, you're making money.

Borrowing against your cash value also makes perfect sense if you have a high cash value and are presented with an investment opportunity that generates a higher return than the interest on your loan.

Not exact matches

Private equity returns remained strong but were lower than the prior year quarter, while income from our fixed income investment portfolio increased due to a higher average level of fixed maturity investments and higher short - term interest rates.

U.S. interest rates are currently much higher than in Europe and Japan, and with neither the European Central Bank nor the Bank of Japan planning any rate hikes this year, foreign capital seeking higher returns could put a lid on rate rises here.

Despite more than paying for itself — by its own reckoning, Ex-Im Bank has returned $ 7 billion to the U.S. Treasury in the last two decades through interest on guaranteed loans and credit insurance — the 80 - year - old government - run financial institution is a sunset agency.

But a growing portion of the money flowing into hedge funds is coming from pension funds, run by investors who are more interested in consistent returns than outsized ones.

With interest rates so low, stocks are better than bonds, but the Canadian market, he says, should see mid-single-digit returns.

With his ideas made clearer by Phillipson's return to first principles, Smith emerges as a much more subtle and interesting figure than the cartoon freemarketeer he's often thought to have been.

And with a growing body of research that suggests employee happiness yields a promising return on investment, many employers are interested in perking up their workers with more than just K - Cup coffee.

That being said, I have a 3.75 % interest rate and I believe, over the long run, I can make a much better return on investing the money than using it to pay off my mortgage early.

The private sector often demands rates of return far greater than public sector borrowing costs, especially in the current low interest rate environment.

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

An investment in a limited partner interest in a private equity fund is more illiquid and the returns on such investment may be more volatile than an investment in securities for which there is a more active and transparent market.

The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).

In return, many CDs offer higher interest rates than traditional savings accounts.

In return for that time guarantee, the bank pays you a higher rate of interest than a typical savings account.

As a result, investors seeking additional returns from fixed - interest portfolios have been prepared to accept greater credit risk than in the past.

More than 12 million borrowers deducted student loan interest on their tax returns in 2015, according to the most current IRS report.

Because your return on investment outpaces your student loan interest charges, it could make more sense to invest than pay off your debt ahead of schedule.

If there exist underfunded investments that generate a return higher than the rate of interest, the surplus on the capital account can be put to good, productive use.

The reason why valuations are so tightly correlated with 10 - 12 year returns is that extreme deviations from historical norms tend to wash out over that horizon, and because interest rate fluctuations have a much less durable impact on market valuations than investors imagine.

It's not just that future returns will be lower from current interest rate levels than they've been in the past; it's that volatility in bonds will be much higher from -LSB-...]

Thus fluctuations in interest rates will cause the total return on bonds to fluctuate, with long - term bonds fluctuating more than short - term bonds.

As it turned out, we raised interest rates weeks before the commitment expired because we saw signs that inflation was returning to its target more rapidly than we anticipated.

«Business checking accounts are at the bottom of the banking totem pole, charging 127 % more than personal online checking accounts, offering 45 % fewer features and returning 73 % less when in interest,» WalletHub reports.

In most industries, less than 2 % of first time visitors convert, while returning visitors convert at an average of 6 %, reinforcing the importance of maintaining the interest of your users.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

We're more interested in capital preservation and risk management nowadays than losing our shirts to get a bigger return.

The unit's return on assets, at 6.7 percent, is some seven times better than its owner's 0.9 percent, a sign of both OneMain's lower costs and the higher interest rates it charges customers.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

They entail significant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in a fund, potential lack of diversification, absence and / or delay of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds.

#TradeElite A7 — I suppose if your projections have you yielding more return than the higher interest it would still make sense; however, projections wouldn't be enough to mitigate the risk of #toohigh interest so, actual revenues, i.e. a pilot approach in - market, is recommended https://t.co/IigZtOkpxC

This is slightly higher than investing when stocks are richly priced and with no concern for the level of interest rates, but it is still significantly less than the long - term average seven year - return.

Whenever the S&P 500 total return index fell more than 10 % below its all - time peak, the Bargain Hunter portfolio took all accumulated cash and interest earned and invested it into the S&P 500, and earned the index's total return with dividends reinvested.

In a rate environment we think of as normal (interest rates slightly higher than inflation), we believe these companies can earn 10 % on equity and if they don't have organic growth opportunities, can return all of it to shareholders.

Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the state an attractive place for investors seeking steady returns higher than they can find in low - interest rate bonds.

Again, there are a variety of ways to refine this result, but note that anytime the total return on the S&P 500 is less than risk - free interest rates, a hedged investment position increases overall returns (since hedging instruments are priced to include implied interest).

The clearest message is when asked whether freelancers are interested in returning to full - time employment, more than half (54 %) said they have no interest.

One factor supporting the Australian dollar over the past couple of years has been that interest rates right across the yield curve in Australia, and perceived returns on other assets, have been higher than those in a number of other countries, particularly those which experienced a recession and a collapse of share prices in the early part of this decade.

Mar Vista Investment Partners has a really interesting research piece out The Price You Pay which has a great table outlining the benefit of an asymmetric return profile (i.e. having more market exposure during up markets than down markets).

If you're enjoying this low - interest loan, it may make more sense to invest that lump sum in an investment that will yield more returns than you're paying to borrow for your home (especially when factoring in tax benefits).

It may not necessarily be very aggressive tightening, but they are likely to begin to raise interest rates soon and that means — as I see it — the US bond market may give lower returns than the European bond market.

While many people believe that growth in the years ahead will be lower than it has been in the past, we can also observe that cash per dollar of earnings has increased over the years for S&P 500 companies as returns on capital have increased, while the cost of capital has fallen with lower interest rates.

Although U.S. interest rates could stay lower than in previous rate cycles as Fed policy very slowly normalizes, investors remain concerned about the impact of rate increases on their fixed income returns.

Only when you can get a risk free return that is higher than the interest rate of your debt should you consider investing instead of paying of your debt.