Since nearly the Reagan administration interest rates have consistently been dropping.
If you're new to rising interest rates (like anyone yet to reach their mid-30's would have to be), or you're interested in better understanding what it impacts, you're in the right place.
Here's what the shift in trends means to your life today and your financial future tomorrow.
Let Me Share Who The Rising Interest Rates Impact Most
First off, and very important, this shift in interest rates isn't something to worry about this week. This is the beginning of a shift that will have a sweeping influence on two core groups who need to pay attention.
1. Home Buyers - I'm Sorry, But Interest Rates are Going Up
If you are looking to buy or sell your home, this news directly impacts you.
We will never see interest mortgage rates as low as we've seen them be in recent years. Just ask your parents what they remember interest rates were... it's not pretty.
Mortgage rates will be rising!
Now What, Chris? What Should I Do?
Without knowing your situation, I believe you should be locking in the lowest mortgage rates we've ever seen, while you still can.
If it's possible for you, go look for ways to lock in an amazing rate.
This advice is especially true if you are:
buying a home
selling a home
refinancing your mortgage
renting a property
2. Hey, Folks Who Are Soon-To-Retire! Smile, Interest Rates Are Rising!
If you are about to retire, this shifting trend in interest rates is HUGE for you
Returns have been so low on Certificate of Deposits (CD's) that they haven't even kept up with inflation.
Higher interest rates will improve the level of growth in "safe money."
Can you imagine getting 10% on a CD right now?
If you are nearing retirement the chances are your risk level is higher than you would prefer it to be. Because you wanted your money to grow and needed to get a strong return, your financial portfolio isn't in safe money. And luckily it's worked.
Rising interest rates will mean better returns on your safe money.
What's Next If You Are Within 10 Years of Retirement?
The good news is the market has been up, and your financial portfolio has probably done pretty well recently. But, how long will that last?
This shift in interest rates is also a red flag for your overall portfolio strategy.
If you are within ten years of retirement and your 401K and investments are sitting in stock... this is an issue.
When the market corrects, how much risk will you be carrying? If it's more than you are comfortable with or you don't know. It's time to make changes.
Financial Peace Today and Prosperity for Your Future
If you want advice about your situation or rebalancing your financial portfolio to get the most out of the changing trends, I would be happy to learn more about you and your goals.
I love helping people find peace in their life by structuring strong financial plans.