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What to Do When Interest Rates Rise

Each individual has different financial goals and interest rate fluctuations can affect investors differently. Speak with a financial professional and formulate a solid plan before making any decisions. Below are five basic items for consideration if and when the Federal Reserve raises interest rates:

1. Maintain complete liquidity for all short-term and near-term needs. Liquid accounts in today’s interest rate environment will probably not keep pace with inflation. Although it is always important to maintain a liquid component in your portfolio, you should think about what major expenses you will incur in the next two years and consider keeping a larger than typical liquid pool of assets.

2. Consider shorter terms over high yields. Although shorter term bonds yield less than longer term bonds, they typically lose less value when rates rise. They are less sensitive to interest rates increases and may provide a more conservative but comfortable choice for some investors.

3. Review all of your income-producing investments. As wealth managers, we help our clients review their income-producing investments. Our primary goal is to match your portfolio to your timelines and personal financial situation.

4. Lock in mortgage rates. Refinance or lock in a low mortgage rate before they rise.

5. Monitor your portfolio regularly. Interest rates can move quickly or slowly. We stay apprised of the Fed and its decisions on interest rates so we can suggest adjustments to your portfolio as needed in a timely and educated manner.

We are here to help!

We are always available to review your investment portfolio with you. We will always consider your feelings about risk and the markets and review your unique financial situation when providing any recommendations.

We pride ourselves in offering:

· consistent and strong communication,

· a schedule of regular client meetings, and

· continuing education for members of our team on the issues that affect our clients.

A skilled financial professional can help make your journey easier. Our goal is to understand our clients’ needs and then try to create plans to address those needs. While we cannot control financial markets, inflation, or interest rates, we keep a watchful eye on them. We can discuss your specific situation at your next review meeting, or you can call to schedule an appointment. As always, we appreciate the opportunity to assist you and your financial matters.

For more helpful investment information, subscribe to our Newsletter, Moorestown Money Talk


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