Don’t look now but rising prices and falling rates are burning your
candle at both ends.
Consider: If an investment that once threw off $1,000 income each month now generates only $700 — and monthly spending that previously totaled $1,000 a month now tops $1,100 — your accustomed standard of living is feeling the heat from two directions. And that’s an especially uncomfortable position for someone who’s near or in retirement, averse to market risk and faced with money coming up for renewal any day.
- Equities attract most of the buzz but diversification requires a broader perspective. What are you doing for the fixed income portion of your portfolio?
- How are your finances protected against renewal rate risk, namely, that assets may be coming due for renewal in a much less favorable interest rate environment than when they were last invested?
- The Federal Reserve now has cut rates 11 times since August 2007. How confident are you that rates will reverse direction any time soon? Take steps to lock in a favorable long-term rate today.
Keep in mind: As of November 12, 2008 a 10-year Treasury was yielding 3.67%. If a rate 148 basis points higher earned in half the time would interest you, seize the opportunity contact me about getting more return with less risk.
