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An interest-rate rule of thumb

An interest-rate rule of thumb

If you expect the interest rate on high-quality, intermediate-term bonds to average around 4% over the long haul—as Schwab does—then you might consider an interest-rate environment ranging from 3% to 5% (using the familiar 10-year Treasury benchmark) to be generally favorable.1 Anything much below that range, and you might want to wait to purchase a fixed annuity.