FINANCIAL FOCUS: Don’t let low rates sink your retirement plans

Joe Faulk

Joe Faulk

Published: Thursday, January 16, 2014 at 18:23 PM.

Over the past few years, if you’ve taken out a mortgage or another consumer loan, you’ve probably welcomed the low interest rates you may have received.

But as an investor, if you’ve kept any retirement savings in fixed-rate investment vehicles, you may have seen low rates in a less favorable light. That’s why it may be time for you take a closer look at your financial strategy for working toward the retirement lifestyle you’ve envisioned.

Of course, you can always hope interest rates will rise, and perhaps they will. As you may know, the Federal Reserve has kept interest rates at record lows in recent years to stimulate lending and thereby boost the economy.

But rates can’t get much lower, and if inflation were to heat up, the Fed could reverse course by starting to raise rates.

However, if you’re going to do a good job of building financial assets for retirement, you really can’t afford to play “wait-and-see” with interest rates.

Instead, consider the following moves:

Rebalance your portfolio. No matter what your situation, it’s a good idea to periodically rebalance your investment portfolio to help ensure it still reflects your risk tolerance, time horizon and long-term goals.



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