Baby Boomers to Face Major Losses in Retirement Plans

According to a recent study by Casey Quirk & Associates, babyboomers will face significant losses in their 401(k)s and IRAs in the next fewyears due to rising interest rates.

When interest rates climb to even half of their historicalaverage, defined contribution plan assets invested in fixed income will likelylose billions.  Casey Quirk found thatinvestors are unprepared for fixed income losses.  However, their study predicts that investorswill combat rising rates by dumping traditional fixed income products into nextgeneration fixed income products.

See Megan Leonhardt, Rising Rates Could Blow Up Boomers’Retirement, Wealth Management, May 31, 2013.