Series: Three Basic Strategies to Prepare for Rising Interest Rates

1.   Consider Adjusting Your Interest Rate Sensitive Holdings

If you hold any interest rate sensitive investments like bonds, you will want to limit the chance that you’ll be disappointed if interest rates rise. Take a look at your current portfolio and discuss with your financial advisor how rising interest rates could affect your positions. Rethink your assumptions when analyzing new positions, and be sure to manage expectations for cash flow and principle values based on the effects of an interest rate increase.