The Business Monthly: Watch Out for Three Potential Traps When Searching for Higher Interest Rates

Christopher P. Parr’s article on the potential interest rate traps of seeking higher interest rates, was written in response to the low interest rate environment.  He explains the concept of financial repression and how it punishes savers and forces consumers to take more risk in an attempt to earn inflation-beating returns.  The article was inspired by two actual client situations.  The first trap referred to an unsolicited letter sponsored by AARP promoting a 9% annuity.  The second trap involved the purchase of an expensive, illiquid, and poorly-timed private real estate partnership investment.

This article was published in the June, 2012 Banking & Finance feature section of The Business Monthly.

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