Time to Dump Bonds? Maybe Not
Jack VanDerhei, research director for EBRI, a Washington nonprofit, analyzed data on how early baby boomers invest to estimate how their portfolios would fare in different interest-rate scenarios.
If interest rates, after adjusting for inflation, stay where they are, about 52% of early baby boomers will run short of money in retirement, according to his analysis.
On the other hand, if interest rates jump by two percentage points, only 44.5% of the same group of early-boomer investors will run short, the analysis found.