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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sources: Bankrate.com
Rising Interest Rates
As discussed earlier, rising interest rates can hurt investors by
driving down the value of their bonds or other fixed-income
investments. Bond prices are inversely related to interest
rates, so, if interest rates go down, the price of a bond will
increase. If interest rates rise, however, the price of a bond will
decrease.
Once bonds are issued, they trade in an open market, just
like stocks. A bond’s price and interest rate are the main factors
that determine its value, but quality deterioration can also be
Chapter 5: Things That Can Wreck Your Retirement
