At Capital Fiduciary Advisors we know that higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon.
The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at its highest level in 40 years. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll most certainly notice it if you are shopping for a new or used car or home renovation.
The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.
Time will tell whether higher interest rates will prompt us to consider changes to your portfolio. Remember, your overall strategy considers that there will be transitional periods in rates and the economy.
In the meantime, we may talk to you about I Bonds(a.k.a. Inflation Bonds), which are issued by the U.S. government and earn a fixed interest rate plus a variable interest inflation rate that’s adjusted twice a year. I Bonds have certain purchase limits, restrictions, and tax treatments so we will need to further discuss together based on your goals and situation.
If you have any questions about inflation or interest rates in the interim, please reach out. We’re always here to help put things into perspective and exchange ideas.
All the best,
Chris Williams, President & CEO
This content is developed from sources believed to be providing accurate information, and provided by Capital Fiduciary Advisors. 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.