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Fed Rate Hike: How it Can Affect You and What You Should Do

by AOG Wealth Management

Up until a few months ago, some economists were convinced that interest rates are going up in June. However, according to more recent reports, Federal Reserve officials are not seeing that possibility just yet. June is an untimely date, they say. Besides, the date of the first rate hike is not as important as the pace of the increases.

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As an independent worker, you need to play your cards right and know your investment options before the hike really sets in. Now is the perfect time to get in touch with an asset management company serving Potomac and the Metro DC area.

What a Fed Rate Hike Means for You

According to CNN Money, raised rates will affect everyone. So long as you have money in the market, the Fed’s policies will trickle down to you in some way. The thing you have to remember is that rate hikes aren’t always necessarily destructive.

An obvious reason the Fed might implement a future rate increase is because the employment market is improving. Millions of jobs have been added in the past year. If anything, a rate hike this year is an indication that the economy is healthy.

Once rates increase, chances are a higher yield on a wide range of assets will also emerge. These include savings bonds, short-term bond funds, and money market funds. If you’re a saver, you might profit from this. The rate hike might finally let you own safe assets as well as earn some yield.

Why You Should Work With Us Today

You have plenty of options to prepare for the hike: you can invest in high yielding and emerging market bonds, or as some financial advisors would recommend, in multi-sector credit and unconstrained bond funds.

But most of all, you need someone knowledgeable to help you make the right decision. The experts at AOG Wealth Management do exactly that. We have a professional team that helps you manage your investments. Our specialists have experience working on tax exchanges, stocks, brokerage accounts, individual retirement accounts, and more.

Let our asset management experts serving Potomac and the greater Metro DC area help you determine the most suitable course of action in the event of a Fed rate hike. Call us at (866) 993-0203 to learn more about our services.

The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

Category: Info Articles