Today’s Prep:
To keep up with current events, we talk about how coronavirus is impacting us on a local level. Then, Eric explains the history of interest rates in light of the latest interest rate forecast from the Federal Reserve.
(Click the featured times below to jump forward in the episode)
Equipping Points:
When it comes to coronavirus, we’re all trying to cope the best we can. Maybe that means walks outside while the weather is nice or finding new ways to do work online and follow social distancing precautions.
As you make decisions and follow the guidelines in place, be sure to consider your source of news. A lot of our national news is coming from New York, which is experiencing coronavirus in a different way than some of your local communities.
Looking at the interest rate forecast from the Fed, what should we make of that? From insurance products to CDs to money markets, what do these rates mean? To better understand the significance, Eric looks back on the past. From 1971 on, he reviews the progression of saving with a fixed interest rate.
What happens when you buy a bond? What was the previous interest rates compared to now? The interest rates used to go up with a bond or CD, but have gone down significantly. If you are a saver wanting a fixed interest rate but the CDs aren’t worth using anymore, what should you do? Should you consider an annuity?
Listen to the full episode or click on the timestamps below to hear more.
1:10 – What is life like right now for Eric in Iowa during coronavirus?
3:55 – Watch where you are getting your news from.
5:20 – What does Eric think about the rate forecast from the Fed?
6:34 – To understand interest rates, let’s go back to 1971.
9:46 – If you are a saver, what is a good way to get a fixed rate of return?
Related Resources:
Making Home Renovations and Protecting Your Retirement Income
Don’t Mistake Good Intentions for Sound Financial Advice
Social Distancing For Your Finances
Today’s Takeaway:
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