Tag Archives | low interest rates
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Quote Of The Week: What Low Interest Rates Mean For You

The Federal Reserve has pushed interest rates to new lows to fight COVID-19. How do these historically low rates affect your wallet? “Good news, bad news. Borrowers will benefit from the low-rate environment. The 30-year fixed mortgage rate is likely to remain below 4% for the foreseeable future. Auto, home-equity and other consumer loan rates will […]

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Don Calcagni

Investing For Retirement Income In A Low-Yield World

Guest Blog By Donald Calcagni, CFP®, MST, Chief Investment Officer Mercer Advisors Summary With interest rates at historic lows, investors are wondering how to generate retirement income. Despite low rates, there’s no need for investors to recklessly chase yields in high-risk asset classes. There’s a better way, one that focuses on your lifestyle, your legacy, and your […]

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Quote Of The Week: Cash May Be King, But It Isn’t Earning Anything

“Over the past two months, households have understandably wanted to boost their cash holdings to wait out the unprecedented volatility of the first quarter and the fear of lost wages.” “But while holding cash can be reassuring for households needing to meet short-term obligations, it can be detrimental to investment portfolios when it isn’t earning anything. And with […]

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Quote Of The Week: What Are Low Rates Good For?

“Low rates might be good for borrowers, but they play havoc with an investor’s portfolio. To achieve the returns they need, investors around the world are being forced to take on more risk simply to achieve yields that risk-free Treasuries and other fixed-income instruments used to offer.” Mark Saukkola, CEO at KBS Capital Markets Group,  “Investing […]

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Quote Of The Week: The Search For Yield

“Investors are once again being forced to look farther afield for income and returns. In some cases, that requires them to face the unpleasant prospect of taking more risk or lowering their longer-term expectations. “That’s the world we’re living in now,” said James Bianco,  head of Chicago-based advisory firm Bianco Research. “Two percent is now […]

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What Does It Mean When Global Interest Rates Turn Negative?

It’s not an easy concept to understand. Across much of the globe, interest rates have fallen to the point they have actually turned negative. Instead of being paid to deposit money at the bank, depositors are being charged to keep their funds on deposit. That sounds crazy, doesn’t it? It’s happening in many countries. Banks and […]

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lt Will Take HOW Long To Double My Money??

This might be funny if it weren’t so devastating for American savers. Just how low are interest rates? Ben Eisen puts it all in context in the Wall Street Journal’s MoneyBeat: In the U.S., it will take 107 years to double your money if you invest in a typical one-year Certificate of Deposit. In Germany, rates are […]

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Rethinking Your Bond Portfolio

Here’s the dilemma posed by today’s low interest rates: Ten years ago, you needed a $600,000 portfolio to generate $2,000 per month in income from U.S. Treasury bonds. Today, it takes almost $1,500,000 to generate that same income. So what’s the solution for investors desperate for higher income? “Go where the income is now, not where it used to […]

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