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Nathan Bachrach manages close to $700 million of retirement funds in a balanced portfolio for 1750 families. He thinks a hike in interest rates is way overdue but the markets will take it in stride. But because rates and bond prices move adversely, unrealized capital gains in his bond holdings will fall when rates reverse. And in today’s monetary environment, he can’t assume traditional asset allocation adjustments will work. What to do? Clients ask, What’s going to happen to Social Security? As long as Uncle Sam has taxing power, Social Security can’t go broke. It is a cash flow problem
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