L1: Interest rates
Well WAS hoping mid-term AFR would get back to 4% range by 2013 MAYBE NOT!!
WASHINGTON (Reuters) – The Federal Reserve said on Tuesday it will keep interest rates near zero for at least another two years
2011-08-09 19:29, By: bob_85364, IP: [22.214.171.124]
L2: Interest rates
About the only thing that could get the interest rate up into the 4% range is a lot of inflation and the Fed says there is no inflation and after all, what the government says is always true.
Unfortunately, the trend seems to be lower – we will probably looking at a rate in the 2.10% range next month.
2011-08-09 23:20, By: Gfw, IP: [126.96.36.199]
L3: Interest rates
Not saying it is likely, but if inflation returns and the fed is stubborn about their so called pledge, it could drive mid term rates higher and long term rates much higher. That would help new 72t participants, but inflation
would hurt the existing plans by perhaps making the fixed payment inadequate to pay living costs.
In addition, the downgrade and any additional downgrades could drive up rates as well once the flight to quality effect ends.
2 year projections must be taken with a huge grain of salt, given that the Fed and economists can’t seem to get even short term forecasts right.
2011-08-10 01:20, By: Alan S., IP: [188.8.131.52]
L4: Interest rates
Well I hope the midterm goes up to around at least 3 or 3.5 some time. I’m not sure I understand the full logic of the IRS tying the interest rate to 120% midterm rate but it seems it should be reviewed, though I dought it will be. I was hoping to start
a 72t sepp this November but may need to post pone though not sure I can wait the years it will take to get to a reasonable interest rate. Very frustrating considering in the past the midterm was as high as 5% and now it is not even 3% how this makes sense
is beyound me.
2011-08-10 04:59, By: Bertalk, IP: [184.108.40.206]