32 • RUBY, WILDING & SWANSBURG
Why Low er Interest Rates are Here to Stay Freolratbivaeblyy lobwoofmorerthselrikeest mofeo, uirt’lsifelitkimelyes.interest rates will be There are several reasons for this, but the primary one is tAhf at et r oaul lr, l og wo v ienrtnemr eesnt tr awt easnrt es —d uacne dt hne eIeRdSs’ s—dleobwt pi na yt emr ee sntt sr. a t e s . An increasingly large portion of our federal budget each year goes to paying interest owed on the U.S. debt. In FY 2024 , 13 pay%meonftsalolnfethdeerdaelbto.utlays were spent just making interest ¹⁸ This is up from just 7% in 2022. Even short-term, these higher interest rates are probably ni nof tl aht ieol np i nc ag ny owui paes omuut cihn carse aysoeus tihni ni nk .t eTrhe as tt ' sr a tbeesc ai nu stee rhmi gsh eorf ci notnesruems t e rr a tbeusy irni sge ptoow3e%r . , I fs aivnef lrast i aorne isst irl lu nl onsi inngg a5t%8 %o n, atnhde buying power of their money. This is the difference between Nominal and Real interest rnaotme si .n a" Nl or amt ei n aa ld"j ursatteeds af orre ian fdl aotliloanr , yoi er l db.u "yRi nega l "p orwa teers. aI tr'es tt hh ee Rtoedaal yi'nstRereeasl trartaetse atrheast tmillartetleartiavselyyolouws.pend your money. And ¹⁸ " F eUd. Se .r Da leSppaer nt md ienngt. "ohf tt thpes T: /r/ef ai sscuarl yd. aFt ai s. tcrael aDs autray. . gAoc vc e/ sa sme de rFi ceabsr-uf ianrayn2c e5 -, g2u0i 2d 5e /. federal-spending/ 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.
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