Negative Interest Rates: How Will You Be Affected?

September 19, 2019

The Principle:

Interest rates sit at historical lows and now we’re hearing news about the possibility of negative rates. As the Federal Reserve continues to make adjustments, we’re left trying to decide what changes should be made for our personal investments.

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

If you haven’t been playing close attention to interest rates, you might be surprised to find out that negative rates have been in the news quite a bit recently.

What exactly does that mean? And better yet, how does that affect you and your investments? Is this a great time to borrow money?

That’s our main focus today on the Retire with Integrity podcast. Brian Bowen will explain what the headlines mean and what it means for financial planning. Now is a great time to evaluate your portfolio and decide if changes are necessary.

The show will also think back to those days of subscription music services – pre-Pandora – where customers would buy 13 CDs for just $0.13. Remember that? Find out what that has to do with retirement planning in this show.

Here’s the rundown for this episode with timestamps you can click to skip around and find specific topics.

[0:16] – More changes coming to interest rates from the Federal Reserve. 

[2:07] – When you’re close to retirement, you can’t afford to take a risk.

[3:10] – You want to find something that can earn you 4-5%.

[4:43] – What’s happening right now with the negative interest rates.

[6:38] – There are subscription services for everything now.

[7:30] – Brian shares a client story.

[11:55] – Why the client ended up with multiple IRAs.

Today’s Truth:

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The Host:

Brian Bowen – Contact