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Both retirees and people saving for retirement have something to cheer in the Federal Reserve’s move to boost interest rates this week. The best news is the reason Fed officials felt they could act for the second time in just three months: their confidence that the economy and job market are getting stronger. A healthy economy bodes well for corporate earnings and thus for stocks. And with the Fed projecting two more rate hikes this year, the interest you can earn on bank accounts and other low-risk holdings is likely to keep growing too. Don’t assume your local bank is going to dish out the richest yields, though; you need to shop around for the best terms, which may be found in other states, at online banks or credit unions. And make sure you understand how bonds work, since rising rates are a mixed bag for them.

Best wishes,


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CORRECTION: An earlier version of this article said the official IRS deadline for investors to take their initial RMD from an IRA or 401(k) is March 31 this year.