Baby boomers’ nest egg may be hit by unexpected interest rate hikes especially because they will be caught unprepared for it, warn Peter Schiff and Marc Faber for The Southern Press.
The writers cite a survey conducted by CIBC Asset Management which concluded that many are absolutely clueless on how a sudden spike in
mortgage rates can and will tremendously affect their savings and investment portfolio. About 65 per cent of these retirees are baby boomers who are 55 to 64 years old and are counting on their pension, savings, and stock investments for a comfortable retirement.
Bond prices decrease in value as a reaction to increased mortgage rates.
The survey advises retirees to recognize this possibility and plan accordingly.
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