A few years ago it would have been unthinkable to even consider the possibility of negative yields.
It now appears that they make up about $10 trillion of $50 trillion in outstanding debt.
The ideal investment portfolio for a retiree is supposed to include a healthy dose of fixed income securities, but is that even a feasible concept given the current level of extraordinarily low interest rates?
How do you cope with “negative” interest rates?
Obviously no matter what course you choose you will take on more risk than you expected.
Managing your Social Security Benefits strategy is one way to reduce this risk as opposed to being totally dependent on equity investments.
But the bottom line is, a Five Percent Five Year certificate of deposit is not in anyone’s future. That conservative low risk reasonable income option is not out there and won’t be for quite some time.
If you have questions out the status of your retirement plans, please consider contacting Don Wettstein @don.dlwplanning.com.