Negative Interest Rates Might Be Coming To The U.S.
Key Takeaways
Negative interest rates could have major consequences for retirement portfolios and financial plans.
Lower interest rates can make it harder for retirement savings to last as long as planned.
Retirement portfolios with significant bond exposure may be especially affected by falling rates.
It once seemed impossible, but many developed nations are pushing interest rates into negative territory. Read about it here.
The U.S. might not be far behind. This could have substantial repercussions for retirement portfolios and financial plans in general.
We have found that for every percentage point that interest rates decline, a typical retirement plan that is invested 50% in bonds will run out of money 5 years earlier. Use the WealthTrace Personal Financial Planning Software tools to see how negative interest rates would impact your future plans.
Plan for a changing rate environment
Explore how different interest-rate scenarios could affect your investments and retirement.
