Risks of retirement: interest rates.
How many times will the Fed raise rates this year? Any changes in interest rates can affect your savings. How can you find protection and potential for your retirement income, without worrying about what rates will do next?
Retirement is risky.It can be challenging to save for retirement and make sure that money lasts long enough. Luckily there are different kinds of annuities your advisor may recommend that can help address many of the risks. Annuities can help you both save enough and enjoy a steady stream of income throughout your whole retirement.
Interest rates and bonds.You may choose to invest in bonds to avoid the volatility of the stock market – but bonds aren’t risk-free. Bond prices go down when interest rates go up, and since they’re still quite low, the upward trend is projected to continue.
Interest rates and CDs.If you choose certificates of deposit (CDs) to save for retirement, low interest rates may make it hard for your earnings to even keep up with inflation. Factor in taxes, and your CD returns may actually end up negative. An annuity can help protect your savings from interest rate risk.