If you have a balance on a credit card or an adjustable rate mortgage, you might be noticing changes in your payments. 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 notice it if you are shopping for a new or used car.
The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.
In the meantime, you may want to look at I 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 they generally play a limited role in your financial picture.
If you have any questions about inflation or interest rates, please reach out. We’re always here to help put things into perspective.
We are a trusted fee-only fiduciary financial planning and investment advisory firm to individuals and small businesses in the Akron/Cleveland area and across the country. Please feel free to give us a call at 330-836-7000 to schedule an introductory conversation. We will partner with you to design a financial blueprint for a successful and stress-free financial future. You can also schedule an introductory conversation with us here.
For nearly two decades, TCM Wealth Advisors has been providing Fee-Only Fiduciary Advice to our individual and business clients in Northeast Ohio, Akron, Canton, and Cleveland, and around the country.