The Federal Reserve recently announced a surprise: a 50 basis point reduction to its benchmark rate. This is the first cut since the start of the COVID-19 pandemic, bringing the federal funds rate to 4.75% to 5%.
And the expectation is that prices will continue to fall in the coming months.
What does this mean to you? For borrowers, lower rates can mean greater savings on loans. In savings, the opposite is true: Falling prices lead to lower levels of savings.
Ready to make your money work smarter, not harder? Let’s look at how you can get money from this currency exchange.
1. It’s a good time to refinance
If you have borrowed money, this is a good time to see if you can lower your mortgage or auto loan payment. Take a few minutes and see if it makes sense to refinance your home loan or car loan.
Even a small reduction in rates can save you a lot of money. Sort the numbers and see if you can find the lowest rate. Then take the money you’re not paying interest on and put it into a high-yield savings account.
2. Invest like 1% and get 9%.
With rates falling, we are all looking for safe ways to get as much money as possible from our savings.
For the rich, there is always real estate. For example, 1% you can borrow money from real estate developers for a short period of time and earn high interest.
Well, now you can do the same thing. If you have as little as $500, companies like Connect Invest can get you into a diversified portfolio of commercial and residential loans that earn around 9%.
They’re called short notes – essentially, borrowing money from real estate developers and earning interest far beyond what a bank would pay.
Here’s why short notes might be right for you:
- Start with just $500
- In short: Choose from six, 12 or 24 month investments
- High returns: Earn up to 9% annual interest
- Monthly income: Get regular interest payments
- Diversification: Spread the risk across multiple projects
Since your interest is protected by a diversified portfolio of loans, short notes are safer than most types of real estate investments.
Anytime you make a real estate loan, there is always the risk of developer default. That’s why short notes pay more than a bank, that’s why you’ll want to work with experienced companies, like Connect Invest, who have the knowledge and experience to reduce your risk by finding the best deals, with the lowest risk and help. you are diverse.
Until recently, we in the 99% didn’t have access to investments like this. Ready to double your returns? Then take a minute now to learn more about Connect Invest.
3. Cut your credit card debt
Credit card interest will go down along with other rates, but the rates will remain very high: more than 20%. But that doesn’t mean you have to sit down and take it.
If you’re carrying a balance on your credit card, see if you can get a personal loan and use the proceeds to pay off that high-interest credit card debt. See also balance transfer options.
4. Increase your savings levels
So much for borrowers. What about conservatives? Over the past few years, we’ve enjoyed huge savings rates, but now they’re going down.
That’s why it’s more important than ever to shop around for the best high-yield savings accounts and certificates of deposit. Now is the time to lock in today’s CD prices before they drop too low.
5. Re-evaluate your investment portfolio
Interest rates are important when it comes to stocks. There’s a lot.
As prices have started to fall, some parts of the stock market, such as utilities, have been doing very well, but others, such as technology stocks, have pulled back.
This is why it is so important to get a second set of eyes for your stock market investments. If you have $100,000 or more in investable assets, talk to a financial advisor. You can use a free advisor matching site to find a vetted advisor in your area.
Take a few minutes to fill out a short questionnaire and be matched with your ideal advisor. Then make an appointment and get free advice on how to get through this economic time.
The bottom line? Prices have been falling for years. Take the time. Destroy some debt. Charge more for your savings. If your goal is to get rich, the time to act is now.
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