Lately there has been a lot of buzz in the media regarding interest rates. It is likely that you have already heard that we’ve been in a historically low interest rate environment for some time now. When will rates rise? By how much will they increase? Although we may not know the exact answers to these questions just yet, one thing is certain, we are closer to an interest rate hike than ever before. Many analysts and experts affirm the fact that the Federal Reserve is gearing up for an interest hike and it is important to understand what this may mean.
As the Fed is poised to start rising rates, we must acknowledge that such an increase can, and likely will, have an impact on millions of Americans. Despite all the various predictions as to when rates will rise, it is crucial to be proactive rather than reactive. For investors, it is imperative that they position their investable assets in such a manner that they may alleviate some of the negative impacts associated with a rate hike.
The average American should remain vigilant in an effort to understand the effects of a rate hike. Such a rise in rates can have some unavoidable consequences on their daily lives. This may include changes to the interest rates they pay on their credit cards, mortgages and auto loans. As borrowing money becomes more expensive, this may deter future homebuyers and consumers from spending as they normally would.
Preparation is always a key element of success and this is no different. As an investor, it would behoove you to formulate a game plan now. Since nobody is certain as to when rates will begin to rise, the time to consult with a financial adviser is now. It is in your best interest to develop a strategic game plan that can combat the potential adverse effects of rising interest rates; specifically, the effects that may impact certain asset classes. In the coming weeks, look to learn more about rising interest and the effects associated with fixed income securities in the newest blog article.
We all know that the Fed will be making the decision to increase rates at a point in time they deem to be most appropriate, and this is why you should position your investments before they even make that initial move. Feel free to contact us with any questions or for more information on putting a strategy in place at (631) 952-4466 x12. Be sure to check to check out the most recent Mitlin Minute on interest rates. Don’t wait until after the fact and let Mitlin Financial help you facilitate a game plan to best prepare you for the impending rise in interest rates.
Disclaimer: This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice.