L1: Interest Rates
Just playing with the calculator, I noticed the mid-term interest rate has a huge effect on the amount that can be withdrawn.
Obviously, predicting interest rates is a whole profession unto itself, however with the federal gov’t borrowing more and more money what is the consensus on where this rate will be in the future. I noticed it was in the 6% range before – are we headed in that direction again?2009-07-24 18:50, By: vanwely, IP: [22.214.171.124]
L2: Interest RatesIt has a major impact. Where will rates go? Anyone who can answer that questionwould quickly become a millionaire.
Withgovernment spending going the way it is and the dollar on a general decline, rates should go up. With that said, if the Fed lets rates rise, it will slow the economy even further.
Your best bet may be to adopt a plan with annual recalculation so that you may be able to take advantage of higher interest rates. However, if you adopt a plan with annual recalculation, the distribution could go up – or it could go down.2009-07-24 19:38, By: Gfw, IP: [126.96.36.199]