THE NEW HOLISTIC RETIREMENT • 33 GDP, b y 2030. Such high a nd rising debt coul d significantl y affect the U.S. economy an d t he federal budget.” 18 Amazingly, this report was issued before COVID- 19 stimulus spending added trillions of dollars in new debt to the calculation. So, heading into 2020, the government had a big incentive to ke e p i nteres t r ates lo w. And now, its ince ntives are even higher. You don’t have to take my word for it. After Congress and the Preside nt passed trillions of dollars i n ne w defici t sp ending, t he Federal Reserve wa s ask ed w here interest rat es were h eaded . How did t hey answer? They sa id t he Fed’s plan was to keep interes t rates low for years to come. 19 Now you understa nd why. So, what does it mean for your retirement? It means we can’t rely on our parents’ strategies to carry us through. We need something new. The Saver’s Dilemma Saver s today face something no other generation has faced: the conflux of a volatile stock market and persistently low interest ra tes. In Moder n Portf olio Theor y (which is jus t a f ancy way of describ ing how financial a dvisors bala nce risk a nd protect ion 18 Congressional Budget Office. Marc h 12, 2020. “Federal Debt: A Primer. ” https://www.cbo.gov/publication/56165 19 Nick Timiraos. The Wall Street Journal. June 10, 2020. “Fe d Officials Project N o Rate Increases Through 2022.” https://www.wsj.com/articles/fed-debates-how- to-set-policy-for-the-post-pandemic-economy-11591781402
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