The news of the first U.S. Federal Reserve rate cut in 11 years dominated the news cycle during the last half of July 2019. Google News alone has 17 million results for the search string “Federal Reserve Rate Cut.” The days preceding a rate cut offered a dramatic, will-they-or-won’t-they speculation regarding the Fed’s potential next move. Now that the rate has been cut 25 basis points, there’s a great uncertainty to what comes next.

The rate cut may protect the ever-expanding economy from a potential global slowdown. It’s also good news for consumers for auto loans or to refinance their mortgage. However, it has some potential drawbacks. The decrease in mortgage rates isn’t much help when there are less available homes to buy. There is also less potential for consumers to earn interest on high-yielding saving accounts. It also may impact Seniors by forcing them to use riskier investment methods in order to maintain their standard of living.

Where can an investor turn in times where financial news is as dramatic as Games of Thrones? If you’ve been following the West Coast blog, you can probably safely predict that I will be mentioning Senior Life Settlements at this point. All joking aside, there’s a reason why we champion Senior Life Settlements:  lower risk. While there is some risk (incorrectly predicting policy maturation times being one of them), this asset class doesn’t face the same onslaught of risks that market-based equity does. Some of those risks bombarding the markets include geopolitical events, natural disasters, random market correction days, and…Federal Reserve actions. Also, in the 150+ years of the life insurance industry’s existence, there has been a 0% (yes, that’s zero percent) default rate for legitimate claims to be paid that are in good contractual standing. How’s that for reduced risk compared to the potential for market losses in times of volatility?

At West Coast, we understand that there’s demand for avoiding market drama. We also understand that lack of knowledge or understanding regarding Senior Life Settlements may discourage investors and advisors from utilizing this asset class. If you’re ready to exit the market roller-coaster and reduce investment risk, let’s talk. Please call West Coast Settlements at (657) 254-4300 or send an email to info@westcoastsettlements.com.