Interest Rates In Late 2019

July2022 | Oct 23, 2018 | 41 posts since 2018

Hi Folks,

I"m curious about what interest rates may be by late 2019. With the Fed upping the basis points I was hoping that 4.5-5% may be a possibility by then.

My goal is to do a in service withdrawal of my 401k when I reach 59-1/2 and shove it into a IRA CD.

Since my 401K at work has a match, I will still continue to fund it, however since Im approaching retirement, I have it in about as a secure of a fund I can get but its yield is terrible.

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Answers

MAKNYC | Oct 23, 2018 | 323 posts since 2015

I’m hoping your hope comes true, but I’ll take the under. Unless you are focusing on CD terms on the order of 10+ years I don’t see this as a realistic scenario. Regardless of the Feds efforts to juice up short rates, at some point long rates anticipate the contraction and easing cycle and banks don’t want to get caught with mismatched assets/liabilities by accepting those expensive deposits at that time. Even now, long rates are barely budging.

But a very high quality municipal bond at those rates does seem plausible to me....and tax free to boot!

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