If you carry credit card debt or have an adjustable rate mortgage, you may be noticing changes in your payments. Higher interest rates have now begun to penetrate the personal finance sector and it looks like these changes will be around for a while.
Recently, The Federal Reserve shared publicly that it plans to continue raising short-term interest rates to help reduce inflation which is, at the moment, peaking at a 40-year high. You will most likely witness the effects of inflation when shopping for groceries, purchasing gas, or buying a new or used vehicle.
It is the duty of The Federal Reserve to continue to curb inflation. Their ultimate goal in raising interest rates is to slow spending and lower consumer prices.
As we continue to monitor interest rates, financial advisors will always consider making timely changes to adjust your portfolio. It is important to remember, though, that the overall strategy of your portfolio does account for transition periods in the economy.
During the current economic climate, investors could consider the value of I Bonds. This type of bond is issued by the U.S. government and earns a fixed interest rate plus a variable interest inflation rate that is adjusted two times a year. I Bonds have purchase limits, restrictions, and tax treatments, so they will account for just a small portion of your financial portfolio.
As we continue to hear real-time news, don’t hesitate to reach out to our team with any questions that you may have about inflation, interest rates, or financial advice. We’re here to continue to shed light on all financial topics and help you and your family to understand the financial climate.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.