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'Income crisis': are retirement plans in danger? Will Rhind talks real estate, economy

Kitco News

A reduction in interest rates has forced investors to look elsewhere besides fixed income, but options for yields still do exist, said Will Rhind, CEO of GraniteShares.

“In this particular traumatic year, we’ve had a cratering of interest rates really across the curve, which has left investors that had a retirement plan before COVID now re-examining those plans,” Rhind said.

Rhind said that the GraniteShares HIPS ETF offers a solution.

“Pass-through securities are a class of security that don’t pay corporate taxes. Right off the bat, you have a class of securities in the market that are not subject to corporation tax and by law they have to distribute, substantially, all of their income to investors. That’s important because if you’re looking for income, you want as much of that income as possible,” he said.

Rhind remains constructive on the equities markets.

“I think the outlook for the markets next year is actually pretty favorable. The reason for that is the market seems to like this environment, in other words, lots of stimulus, low interest rates, has been good for equities,” he said.

Real estate remains dependent on the area.

“The one thing that we have seen is huge amounts of refinancing activity, mortgage refinancings,” Rhind said.

People have taken advantage of low interest rates, Rhind said, and that has created demand for real estate in some markets.

REITs occupy 18% of the portfolio allocation of the HIPS ETF.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.