Looking for your opinion: When will interest rates increase?

[KTP]

I have started paying off our house in chunks and treating it as a decent interest rate bond.

(I know you can't get the money back out easily like you can with a CD, so I keep a large EF)

Our rate is very good (3.375% on a 12 year loan) but it is hard to get 3.375% guaranteed return on anything else right now.

[disneysteve]

Just print up a few of these....

I love this. I showed it to my daughter and she got a kick out of it. I think I may buy some of these on ebay.

[dontgopoor]

I hate dealing with the risk associated with the stock market, but at these current ridiculously low interest rates, I am starting to think that it is worth taking the risk in the market.

Christian321 - if you think that the stock market has risk but interest bearing bonds do not, you should read a bit about interest rate risk. You may also want to look into the difference between equity (i.e., stock) risk and volatility.

Stocks may seem riskier than bonds to you because of stock market volatility over the last many years, but holding stocks long term offers similar risk with greater return - you can find plenty of research on this subject.

If you're just concerned with holding value for the near term (as in a late age, retirement situation), then you may want to look into a low-cost, income-producing bond portfolio.

Also, take a look at the recent Motley Fool article "19 Alarming Things We Learned About Financial Literacy in America", which I've linked somewhere else on this website and and on the G+ "Don't Go Poor" page, where I tend to post consumer related articles.

If you have a specific challenge to overcome, then post more specifics. And keep in mind, no financial product is risk free.

[ecoadapt]

Far from predicting when the rates will increase,we all are hoping it will happen soon!

[SMSF101]

i guess so, time will come that rate will increase but no one c an really tell when it will happen

[BMEPhDinCO]

The Feds just announced rates will be held low at least through 2015.

So don't expect good interest rates for saving but on the flip side, CC and loan rates should also be low through then.