Keep an eye on interest rates as you consider your wealth transfer strategies.

  • Interest rates are a key component of wealth transfer strategies, and any changes in the rates will affect these strategies.
  • Some strategies are particularly beneficial in a low interest rate environment, while others become more suitable as rates continue to rise.
  • Until rates rise significantly, the tipping point for changing to high-rate wealth transfer strategies is in the distant horizon.

In December 2016, the Federal Reserve raised the interest rate and indicated that it expects to continue to raise interest rates in small increments in 2017. Interest rates are a key component of wealth transfer strategies, and any changes in the rates will affect these strategies. In a low interest rate environment, there are certain strategies that are particularly attractive; however, different methods will become more suitable as the rates begin to rise, and financial strategies always require consideration of individual circumstances.

Please see important disclosures at the end of the article.

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