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<blockquote data-quote="KPRC2" data-source="post: 56010" data-attributes="member: 148">The Federal Reserve meets today and many anticipate it will increase interest rates by three-quarters of a percentage point, if not a full point.Local financial professional Ryan Wheless from Allied Wealth appeared on KPRC 2+ to discuss what another rate increase could mean for consumers and debunk some common myths.MYTH #1: SOME PEOPLE THINK THE FED IS PUSHING US INTO A RECESSION. IS THIS TRUE?<ul>
<li data-xf-list-type="ul">Although a recession could happen in the future, the goal of the Fed is to lower inflation without pushing the economy into a recession, known as a “soft landing.”</li>
<li data-xf-list-type="ul">The labor market is strong at a 3.6% unemployment rate, but inflation is still climbing, hitting 9.1% in the latest report.</li>
<li data-xf-list-type="ul">Unfortunately, a lot of factors contributing to high inflation can’t be controlled by the Fed. rising interest rates.</li>
<li data-xf-list-type="ul">The ongoing war in Ukraine and shutdowns in China due to COVID are causing prices to rise, and increased borrowing costs are unlikely to change either of those situations.</li>
<li data-xf-list-type="ul">It’s tough to predict a recession until we’re actually in one, but the Fed is hoping for a soft landing.</li>
</ul>MYTH #2: SELL STOCKS NOW TO MINIMIZE LOSS. IS THIS A RECOMMENDED STRATEGY?<ul>
<li data-xf-list-type="ul">No matter what happens with the rate hikes, I tell my clients not to make any knee-jerk reactions to what’s happening on Wall Street. Retirement strategies should be diversified and have appropriate risk for your age and how close you are to retirement.</li>
<li data-xf-list-type="ul">At Allied Wealth, we minimize market risk for our clients through outcome-focused planning, giving them peace of mind to spend money in retirement.</li>
<li data-xf-list-type="ul">It’s no secret that the interest rate hikes have caused wild swings on Wall Street, but a good financial strategy does not let short-term volatility impact a long-term approach.</li>
</ul>MYTH #3: CASH STUFFING IS BETTER THAN SAVING ACCOUNTS. IS THIS TRUE?<ul>
<li data-xf-list-type="ul">Inflation means the buying power of your dollars is decreasing. If all of your savings are sitting in a box under your bed, they may be safe from poor-performing stocks, but they aren’t gaining any interest to combat inflation.</li>
<li data-xf-list-type="ul">Deposit rates tend to correlate with changes in the Federal fund rate, but the changes in savings have been small compared to the aggressive rate hikes.</li>
<li data-xf-list-type="ul">he average rate for an online savings account is around 1%, and although small, it is better than a 0% gain.</li>
<li data-xf-list-type="ul">Cash stuffing may be an effective budgeting method for “fun money,” like dining out, or clothes or date nights, but saving accounts are still a generally effective and safe way to store your money.</li>
</ul>MYTH #4: RISING INTEREST RATES AND INFLATION IS A UNITED STATES PROBLEM. ARE OTHER COUNTRIES EXPERIENCING THIS SAME ECONOMIC HARDSHIP?<ul>
<li data-xf-list-type="ul">With global imports and exports, we’re a part of a global economy; COVID outbreaks and conflicts overseas impact America and other countries.</li>
<li data-xf-list-type="ul">America landed right in the middle of an analysis of 111 countries currently experiencing inflation issues.</li>
<li data-xf-list-type="ul">The median rate of inflation of those countries came in at 7.9%.</li>
</ul>MYTH #5: INFLATION AND INTEREST RATES MAKE IT IMPOSSIBLE TO RETIRE RIGHT NOW. IS THIS WHAT YOU’RE SEEING WITH CLIENTS?<ul>
<li data-xf-list-type="ul">The volatility on Wall Street caused by high inflation and interest rate hikes have understandably made investors nervous, but retirement is still very attainable.</li>
<li data-xf-list-type="ul">If you’re in or near retirement, I recommend having at least two to three years’ worth of income set aside in liquid assets such as cash and short-term bonds to draw from during down markets.</li>
<li data-xf-list-type="ul">This money allows you to stay invested and avoid selling at a loss.</li>
<li data-xf-list-type="ul">We want to help our clients minimize risk and create plans to withstand market downturns like we’re seeing now.</li>
<li data-xf-list-type="ul">You can learn more about theretirement planning process on our website, <a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.alliedwealth.com_&amp;d=DwMFaQ&amp;c=IdVe9qYOlLvEHvfqFspkfxuOEuSulhj36o8Ug6l7Bq4&amp;r=mdTQD9Fiu2S_pDDmjMrgRTTLpdu7ii8vSqs3zsKHkgE&amp;m=JNgdnGtmZ34s54fc51rPAxzo88h57tULNEFPW_fHs0pnCvk3CpssP3774He3P2I0&amp;s=Jgn_HXMmCU45Lakb80bsOmB7pgs2_DPayFO7W6a58SM&amp;e=" target="_blank">www.alliedwealth.com</a>.</li>
</ul>You can stream KPRC 2+ weekdays at 7 a.m. on <a href="http://click2houston.com/" target="_blank">click2houston.com</a> and on the <a href="https://www.click2houston.com/insider/download-kprc-apps/" target="_blank">KPRC 2 app</a>.<a href="https://www.click2houston.com/news/local/2022/07/26/federal-reserve-expected-to-raise-interest-rates-again-what-that-means-for-consumers/" target="_blank">Continue reading...</a></blockquote>

[QUOTE="KPRC2, post: 56010, member: 148"] The Federal Reserve meets today and many anticipate it will increase interest rates by three-quarters of a percentage point, if not a full point. Local financial professional Ryan Wheless from Allied Wealth appeared on KPRC 2+ to discuss what another rate increase could mean for consumers and debunk some common myths. [B]MYTH #1: SOME PEOPLE THINK THE FED IS PUSHING US INTO A RECESSION. IS THIS TRUE?[/B] [LIST] [*]Although a recession could happen in the future, the goal of the Fed is to lower inflation without pushing the economy into a recession, known as a “soft landing.” [*]The labor market is strong at a 3.6% unemployment rate, but inflation is still climbing, hitting 9.1% in the latest report. [*]Unfortunately, a lot of factors contributing to high inflation can’t be controlled by the Fed. rising interest rates. [*]The ongoing war in Ukraine and shutdowns in China due to COVID are causing prices to rise, and increased borrowing costs are unlikely to change either of those situations. [*]It’s tough to predict a recession until we’re actually in one, but the Fed is hoping for a soft landing. [/LIST] [B]MYTH #2: SELL STOCKS NOW TO MINIMIZE LOSS. IS THIS A RECOMMENDED STRATEGY?[/B] [LIST] [*]No matter what happens with the rate hikes, I tell my clients not to make any knee-jerk reactions to what’s happening on Wall Street. Retirement strategies should be diversified and have appropriate risk for your age and how close you are to retirement. [*]At Allied Wealth, we minimize market risk for our clients through outcome-focused planning, giving them peace of mind to spend money in retirement. [*]It’s no secret that the interest rate hikes have caused wild swings on Wall Street, but a good financial strategy does not let short-term volatility impact a long-term approach. [/LIST] [B]MYTH #3: CASH STUFFING IS BETTER THAN SAVING ACCOUNTS. IS THIS TRUE?[/B] [LIST] [*]Inflation means the buying power of your dollars is decreasing. If all of your savings are sitting in a box under your bed, they may be safe from poor-performing stocks, but they aren’t gaining any interest to combat inflation. [*]Deposit rates tend to correlate with changes in the Federal fund rate, but the changes in savings have been small compared to the aggressive rate hikes. [*]he average rate for an online savings account is around 1%, and although small, it is better than a 0% gain. [*]Cash stuffing may be an effective budgeting method for “fun money,” like dining out, or clothes or date nights, but saving accounts are still a generally effective and safe way to store your money. [/LIST] [B]MYTH #4: RISING INTEREST RATES AND INFLATION IS A UNITED STATES PROBLEM. ARE OTHER COUNTRIES EXPERIENCING THIS SAME ECONOMIC HARDSHIP?[/B] [LIST] [*]With global imports and exports, we’re a part of a global economy; COVID outbreaks and conflicts overseas impact America and other countries. [*]America landed right in the middle of an analysis of 111 countries currently experiencing inflation issues. [*]The median rate of inflation of those countries came in at 7.9%. [/LIST] [B]MYTH #5: INFLATION AND INTEREST RATES MAKE IT IMPOSSIBLE TO RETIRE RIGHT NOW. IS THIS WHAT YOU’RE SEEING WITH CLIENTS?[/B] [LIST] [*]The volatility on Wall Street caused by high inflation and interest rate hikes have understandably made investors nervous, but retirement is still very attainable. [*]If you’re in or near retirement, I recommend having at least two to three years’ worth of income set aside in liquid assets such as cash and short-term bonds to draw from during down markets. [*]This money allows you to stay invested and avoid selling at a loss. [*]We want to help our clients minimize risk and create plans to withstand market downturns like we’re seeing now. [*]You can learn more about theretirement planning process on our website, [URL='https://urldefense.proofpoint.com/v2/url?u=http-3A__www.alliedwealth.com_&d=DwMFaQ&c=IdVe9qYOlLvEHvfqFspkfxuOEuSulhj36o8Ug6l7Bq4&r=mdTQD9Fiu2S_pDDmjMrgRTTLpdu7ii8vSqs3zsKHkgE&m=JNgdnGtmZ34s54fc51rPAxzo88h57tULNEFPW_fHs0pnCvk3CpssP3774He3P2I0&s=Jgn_HXMmCU45Lakb80bsOmB7pgs2_DPayFO7W6a58SM&e=']www.alliedwealth.com[/URL]. [/LIST] [I]You can stream KPRC 2+ weekdays at 7 a.m. on [/I][URL='http://click2houston.com/'][I]click2houston.com[/I][/URL][I] and on the [/I][URL='https://www.click2houston.com/insider/download-kprc-apps/'][I]KPRC 2 app[/I][/URL][I].[/I] [url="https://www.click2houston.com/news/local/2022/07/26/federal-reserve-expected-to-raise-interest-rates-again-what-that-means-for-consumers/"]Continue reading...[/url] [/QUOTE]

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