In the following video, Fool analysts Matt Koppenheffer and David Hanson discuss how Federal Reserve actions may change your approach to retirement planning.
Recently, many private investors have been considering stocks that pay higher dividends, specifically mortgage real estate investment trusts, or REITs, as an alternative to low-yield fixed securities. Matt thinks that mortgage REITs, including Annaly Capital Management (NLY +1.54%) and American Capital Agency (AGNC +1.47%), will have to navigate a challenging short-term interest-rate environment. He explains how short-term interest-rate spreads may affect future dividend yields and stock prices.
Matt also considers how your retirement time horizon may be a crucial factor in deciding to include or hold mortgage REIT equities in your portfolio.
