Is Your Plan Ready For Rising Interest Rates?
You’ve probably been enjoying a nearly unprecedented bull market that the stock market has been on for nearly the past decade. But did you know that bonds have been on a bull market for more than 30 years? Fixed income investors have benefitted as yields have inched lower while values have trended higher.
Now, it appears the United States may be at a turning point. Since 2016, the Federal Reserve has raised interest rates six times, and it is expected to raise rates at least three more times this year. Investors are taking note, but what actions can plan sponsors take to prepare?
We help thousands of plan sponsors, so we are keenly aware of the challenges they face. I recently shared with 401k Specialist my perspective on how rising interest rates might affect plan sponsors, and some steps they can take to prepare their plans and participants. Click here to read the full article.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.
Chart Source - Board of Governors of the Federal Reserve System (US), 10-Year Treasury Constant Maturity Rate [DGS10], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DGS10, April 16, 2018.