Take Advantage of Today's Low-Interest Rate Environment Before it Ends.
The lowering of interest rates by The Fed intends to promote economic growth during these difficult times. Rates will likely remain low until the end of 2023
as our economy recovers. Low rates make it cheaper to borrow and encourage people to spend more instead of keeping their money in savings accounts. Declining rates help businesses and further supports the economy. Take advantage of today’s low-interest-rate environment while you still can.
Refinance Your Mortgage and Student Loans. If you have a mortgage and or student loan debt, you may save on interest by refinancing these debts. Depending on your credit, how much you owe, and how long you have held your mortgage or student loans, a refinance may save you thousands of dollars in interest over time and help you pay off your debt faster.
Consolidate Credit Card Debt. A low-interest-rate environment is a great time to consolidate your high-interest rate credit card debt and save on interest. To do so, you may want to consider taking out a personal loan with a low-interest rate or use a balance transfer card with a 0% APR for a set promotional period. Visit with your financial professional to determine the strategy that is best for you.
Continue to Focus on Your Savings Goals. Just because rates are near zero doesn’t mean you should forgo your savings and retirement strategy. Regardless of what’s happening in the economy, saving for emergencies and retirement are essential priorities. Keep on saving, and don’t let low rates stop you.
Historically when recessions end, there is a period of increasing interest rates. With the COVID-19 recession still occurring, it is unavoidable that interest rates will once again increase, leading to a loss of purchasing power for consumers. It is this high-inflation scenario that The Fed hopes to avoid as it keeps interest rates low, impacting the following consumer debt:
- Student Loans
- Home Mortgages with Variable Rates
- Credit Card Interest Rates
- Savings Accounts and CDs
- Auto Loans
Are you concerned about low interest rates and your retirement portfolio?
Talk to our team. Together we can review your financial situation and develop a strategy for your unique goals. Reach out to the Investment Service Center or book an appointment online.