Finding Yield in 2020’s Low-Interest Rate Environment

The following article, authored by Chris Masone, Director of Wealth Management at Phoenix Capital Group, aims to educate the general public on competent investments in 2020’s financial climate. 

The Current Situation

The 10-year Treasury yield has been trading below 1% for most of the year, causing bank savings and Certificate of Deposit rates to be abysmally low. As the second wave of Covid-19 hit Europe & the United States, investors have begun taking part in Election Sell-Off (Fig. 1. Business Insider CHART: Post-Election Sell-Off Business Insider.”, Business Insider, 19 Nov 2012, https://rb.gy/w85vua) As the year comes to an end, different wealth levels agree on one thing: The market becoming too volatile to invest large sums of money. This, coupled with uncertainty surrounding the coming election has a huge effect on investment portfolios and volatile products (i.e. the standard market). Proactive protection from that possibility is taking a small number of your family’s assets and sheltering them from standard investments and participating in a private placement investment.

If Biden wins, that plan would first raise taxes on capital gains by treating them as ordinary income for those earning more than $1 million, raise the top rate on ordinary income back up to 39.6 percent from the 37 percent rate (put in place by the Tax Cuts and Jobs Act). As such, the top rate on long-term gains would nearly double from 23.8 percent to 43.4 percent. Once again, investors are looking towards annuities, treasury bonds, CDs, etc…and the “safe” investments. The problem with these is twofold. First, it is likely you will tie your money up for up to 10 years on these programs. Second, most of the interest rates are all below 4% in the retail and government market. Our product eliminates both of those.

Phoenix Capital Group’s Value in the 2020 Market

Higher yields in the financial markets usually require the use of a leveraged fixed income product or excessive risk-taking and this year is proving to be a tough year if you are desire high yield. Phoenix Capital Group has proven to be an ideal solution for many investors by providing market-leading yields while minimizing risk. Our core business function is to acquire high-quality, oil rich assets in North Dakota, Texas, and Colorado, under top-tier operators. The assets owned and pursued by Phoenix Capital Group are best in class which provides strong value support even in times of extreme financial volatility. Private market data obtained by Phoenix in the early parts of 2020 supports this assertion.

Phoenix is offering market-leading yields to a limited number of investors. One of the founding principles of Phoenix Capital Group is to serve the needs of Main Street and not Wall Street and this offering is consistent with that objective. The proceeds raised from this program will serve our core business function of acquiring high-quality assets. This is a fantastic opportunity to utilize the expertise of Phoenix Capital Group and earn market leading yields. Lastly, Long term care. This is one of the most important expenses folks need to plan for. There are not many safe investments out there where individuals can decide what they will need to sustain their care financially and shelter it in a program where they and the family can take solace in knowing that those funds will not dry up, in fact, they will grow quarterly. With that said, God forbid something happens to you, the beneficiaries on the policy take over the payments and program just like any other asset you put in your estate.

The team at Phoenix is here to help you and your family achieve your financial goals with a product that has historically only been available to a small subset of high net worth individuals. Phoenix is now making private placements available to a broader range of potential investors. Everyone deserves the comfort of financial security for their family and through our dedicated team of associates and seasoned industry experts, Phoenix will work with you to build your custom plan.

About Phoenix Capital Group Holdings, LLC:

Phoenix Capital Group offers services to help mineral rights owners understand their opportunities in both retaining and cashing out of their ownership positions. Phoenix Capital Group also provides opportunities for people to partner with and invest alongside the Company. Their focus is on educating, serving, and guiding their clients with integrity and humility. If you would like to better understand your options from a friendly industry professional, give them a call at (213) 316-8720.

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