Tag: high interest rates
Without homeownership, it’s hard to save. When thinking about the future of Social Security, one concern should be whether future cohorts will have comparable assets to people retiring today. Today, a major component of the typical retired household’s portfolio is their home. In fact, the house is the major asset for most families. But today…
Are annuities more valuable when interest rates are low? That seems counterintuitive. After all, annuities produce higher monthly incomes when interest rates are high. But consider the extreme case of a zero interest rate. That scenario eliminates the option of living off the income from investments in retirement. The choices come down to various alternativ…
