Interest Rates Rise Bond Values Drop

Interest Rates Rise Bond Values Drop

By Cathy DeWitt Dunn

With the Fed putting the brakes on its economic stimulus package, interest rates are on the rise. If you have bonds in your investment portfolio, you are probably experiencing “the seesaw effect.” Interest rates rise, and bond values drop.

There is no indication that interest rate hikes will be slowing down any time soon, and that is driving baby boomers and older retirees to start unloading their bond holdings. But how are these investors going to replace the income and protection their bonds once offered?

In an article published on, the RetireMentors cite Fixed Index Annuities as an alternative to bond holdings. FIAs offer retirees tax-deferred earnings, long-term income, and protection from downturns in the stock and bond markets. The RetireMentors write, “Given their advantages, fixed-index annuities purchased from highly-rated insurance carriers may provide a suitable alternative for a portion of a bond portfolio…”

Schedule An Appointment

At AnnuityWatchUSA, we specialize in Fixed Index Annuities. We work with the largest, and highest-rated, carriers, and we can tailor a retirement income plan specifically to you. We would love to visit with you, either in person or over the phone, to find out more about your retirement goals and how we can help you.

Remember, there is never any cost or obligation.

We look forward to hearing from you!


Other websites by DeWitt & Dunn Financial Services: