South Windsor has a large retirement population and many on fixed incomes. You hear in the news everyday about raising interest rates, so what does that mean? As inflation and interest rates rise, bond prices could fall. There are investment strategies that may better address your objectives in higher interest rate environments than bonds. Real estate, for example, may address your goals more closely in higher rate enviroments than bonds. Bond yields are fixed once investors buy bonds, but yields on real estate may adjust for fluctuations in rates.
|Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.|