Interest Rates and Retirement in North Carolina


Retirement planning in North Carolina

North Carolina is consistently rated a top place to retire in national reports, and this year the Tar Heel State became even more attractive with the repeal of the North Carolina estate tax. Also, part of North Carolina’s tax reform included preservation of the income tax-free status of Social Security benefits.
Low interest rates are drawing home buyers who may be looking to relocate or purchase a second home. However, these low interest rates for mortgages also mean low interest rates for cash held in retirement accounts. Last year, approximately 30% of investors said they are delaying retirement. Low interest rates are producing insufficient funds for retirees. For those who are considering retirement in North Carolina, there are ways to minimize the effects of low interest rates and protect your retirement investments.
Diversifying investments under the guidance of a Certified Financial Planner is a start. Since interest rates are low now, review retirement savings options that do not require long-term investment. For example, if individuals lock into a CD now, they may miss out potential earnings if interest rates go up. Creating a flexible investment strategy now helps ensure that attractive opportunities are not missed later on.
Without strategic moves for retirement accounts, retirees may find themselves working through their senior years—or joining the “Sandwich Generation” and moving in with their adult children to cut costs. But, the good news is that for children or others who inherit IRAs, new North Carolina legislation that passed in 2013 now protects the accounts from creditors even after the death of the original account owner.
Address: 1414 Raleigh Rd Ste 203, Chapel Hill NC 27517
Phone: 919.636.0950 | Toll Free: 800.201.0413 | Fax: 919.493.6355 |