We read and hear a lot about interest rates as the move up and down, but how much do you know the rates and how they’re established? Find out how the Federal Reserve operates and what the changing rates mean for the economy and your finances.
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Interest rates have been in the news quite a bit recently as they remain at historically-low levels, but where are we headed next?
To understand where the economy might be going, you first need to know how we got to this point. On this episode of Your Money & Your Life, we’ll spend our time solely on interest rates. Don Cash will provide some history on the Federal Reserve and how the determine what the rates will be. If you’ve ever wondered why rates are so low, you’ll enjoy the explanation on the show.
With the rates at a low level, you hear a lot about what investments make the most sense and take advantage of the rates. We’ll talk about how both individuals and major companies can benefit from the rates and some strategies that are employed.
No conversation about rates is complete without looking at what it means to the economy. Are there signals you can find that will tell you where things are headed? Don will also address the bigger financial picture on this show.
Before we wrap up, we will answer a listener question about small business owners and Social Security, and we’ll close out the show by getting to know Don’s movie tastes a little better.
Listen to the entire show above or click the timestamps below to skip ahead to a specific segment.
2:00 – We’re talking interest rates today.
2:17 – It’s amazing how much influence the Federal Reserve has on the market today.
2:38 – Don asks a trivia question.
4:04 – How the Federal Reserve controls short-term interest rates.
5:24 – Why lower the rates now?
6:02 – The Federal Reserve has this basic objective.
6:38 – Show does this affect the consumer?
7:58 – Here’s the bigger story though.
8:54 – There’s been some demand for long-term bonds.
11:16 – Can the inverted yield curve predict a recession?
12:32 – Cash Connection question: I own my own business and haven’t paid much into Social Security even though I’ve had a nice income. Should I be worried?
16:42 – Getting to Know Don: What universally well-known movie have you never seen?
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Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advoctaes a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.