10 best moves for rising interest rates
There is nothing that fits the definition of a “double-edged sword” better than rising interest rates.
If you’re a saver, you like the idea of rising rates. It’s been years since we’ve had bank accounts and other shelters paying more than a pittance.
But if you’re a borrower, you’re not a fan of rising rates because it means paying more for everything from credit card balances to mortgages.
Investors also prefer lower rates because cheap money drives asset prices higher, as you’ve no doubt seen if you’ve bought homes or stocks in recent years.
No matter who you are – saver, borrower, investor or any combination of these – your world is about to change. Because the country’s central bank has signaled that in about a month, rates will rise.
Most experts predict that the Federal Reserve will raise the federal funds rate by at least 0.25 percentage points at its next meeting in mid-March. And experts predict up to five more rate increases before the end of 2022.
Therefore, whatever your situation, now is the time to prepare.
That’s what the show “Money!” this week’s podcast is about. We’re going to talk about specific moves everyone should be considering in the weeks and months ahead.
As usual, my co-host will be financial journalist Miranda Marquit. Rookie producer and investor Aaron Freeman listens and sometimes contributes.
Sit back, relax and listen to “Money!” Podcast:
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If you haven’t listened to our podcast yet, give it a try and subscribe. You’ll be glad you did!
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