Interest rates have long been at historic lows, and it’s only a matter of time before they head back up. And while it’s impossible to know just when rates will bottom out and start climbing, these strategies could help position your portfolio for what may come.

• Build a CD “ladder.” As interest rates rise, certificates of deposit will offer higher yields, and if you invest in CDs with a range of maturities, you’ll be poised to act when rates move higher. You can reinvest the proceeds of CDs with early maturity dates into new CDs with better yields and longer maturities.
• Reallocate bond funds. Prices of existing bonds fall as interest rates rise, but adjusting your bond portfolio could help you pare losses. We can guide you in striking the right balance between maturity and yield.
• Look elsewhere for income. To offset falling bond values, you could add more weight to other income-producing investments, such as dividend-paying stock funds.
• Revise personal debt. For instance, if you use a home equity line of credit, its interest rate may adjust upward with the prime rate. Consider taking a home equity loan, with a fixed interest rate, to pay off the line of credit.

Interest rates present complex challenges. Please call and make an appointment so we can help you get into position for rising rates.