The Race Is On
Interest rates are one of the most important economic variables in the economy today. Over the past couple of years, interest rates have hit their all-time lows. With the election of Donald Trump, the stock market has responded positively. However, many people are worried that interest rates will be increased again by the Federal Reserve. If this happens, there will be a group of winners and losers. Anyone who is trying to buy a house will have to pay more on their mortgage. However, anyone who is saving for retirement will have an easier time earning a higher interest rate on the money they have invested.
Buying a Home
There are a lot of people who are looking to buy a home in the coming year. Future money trends suggest that more people than ever are in the market. However, if you look at the average person’s investment portfolio, they simply do not have enough money to meet their financial goals. Over a long period of time, investing for retirement is essential. Few people understand the importance of getting started early and staying consistent. If you want to build wealth for the future, this is an important concept to remember. The person who gets started early in life has a huge advantage over those who wait.
Future Interest Rate Moves
In the coming years, many people expect that interest rates will continue to go up. This is not good news for people who are trying to buy a home or borrow money. As the economy builds strength, the Federal Reserve wants to be proactive in preventing currency devaluation. There are many nations across the world where the currency has been devalued, and this is not a good thing for a variety of reasons. Inflation is the silent killer of people’s portfolio’s, and the Federal Reserve wants to prevent future money trends from going this way. In many large cities like New York and San Francisco, people are already starting to feel the pinch.
Next Steps
Having a solid financial base is one of the best things that you can do in order to protect yourself financially. A lot of people are having to scramble in order to save up enough money for retirement. If you find yourself in this situation, there are a lot of great things that you can do to catch up quickly.
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