Higher interest rates can be good news for savers and bad news for borrowers. But even a 5% return may not protect your standard of living if inflation remains high.
Jeff Levine, chief planning officer for Focus Partners, joins Bob Powell to discuss:
- Why nominal yield can misrepresent purchasing power
- How rising rates affect bonds
- What retirees should test in their spending plans
- How homebuyers can respond to higher mortgage rates
- When refinancing may be worth evaluating
- Why a weaker dollar can raise the cost of imported goods
There is no single strategy for every household. The right response depends on whether you are saving, investing, borrowing or living from retirement income.