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Five things retirees need to know about negative interest rates

Market Watch:

The concept of a negative interest rate is one that would be considered unthinkable just aew years ago. Yet today, around a third of global government debt offers a negative yield. The consequences are widespread. Financial textbooks are being rewritten, companies are asking vendors to postpone payment, and banks are even rewriting software code.

1. What is a negative interest rate?

2. Why would a central bank pursue a negative interest rate strategy?

3. Why would any rational investor accept a negative yield?

4. What are the implications for retirees?

5. Should retirees be worried?

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