Expert Q&A

The scary part of this question is that many people try to be conservative during their retirement and put all of their assets into CD’s and bond funds that produce a stream of income to suupplement their pensions or social security. In a rising interest rate environment where the fed keeps printing money, inflation WILL be a problem, it is not a question of if but when. When interest rates rise, bonds generally tend to fall which can lead to a big shock to conservative investors. One needs to look at a combination of having blue chip value stocks that are producing a high and stable dividend, alternative investments (such as REITS, commodities, oil, gas & leasing partnerships, etc..) as well as looking at TIPS and shorter duration bonds and bond funds to limit interest rate risk. Consult with your financial professional to see what combination fits your goals and risk tolerance.