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Low Interest Rates Throw Wrench Into Retirements

Monday, September 10, 2012 - 10:16 AM
The desire for safety has investors clamoring for U.S. Treasuries and investment grade corporate bonds -- staples in retirement portfolios -- driving those interest rates lower as well. Roger Aliaga-Diaz, a senior economist at mutual fund giant Vanguard Group, said he expects investment grade bond portfolios to average returns of 2-3 percent for the next 10 years.

"That's scary," Aliaga-Diaz said. "There is no easy way out of this."

Low interest rates throw wrench into retirements | StarTribune.com
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