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Low Interest Rates And Investors

What You Need to Know

Interest rates are important to investors and they are currently at or near all-time lows. At this past June’s Federal Reserve meeting, interest rates were kept at a range of 0%-0.25% and it was indicated that they will remain near zero until the economy recovers from the effects of COVID-19. How will this impact your investing decisions?

Below are four things to consider while navigating today's low interest rate environment:

  1. Be mindful of the ongoing public health crisis which will weigh heavily on economic activity, employment, and inflation.
  2. Keep a close eye on The Federal Reserve (Fed) as it determines the rates at which U.S. banks borrow money. Their changes can
    produce a ripple effect across the entire economy. 
  3. At today’s low interest rates, investors might not be able to generate the type of returns they need or want with a heavy emphasis on fixed income. At 1% it takes about 70 years to double your money and at 0.50% that time period grows to 139 years.
  4. Many borrowers are taking advantage of these record lows and banks are seeing an uptick in home purchasing and refinances.

Want more information on how low interest rates are affecting the economy & the markets? Click below to receive our latest insights: 

 Low Interest Rates and Investors.pdf

We Are Here For You!

Our advice is not one-size-fits-all. We, in addition to tailoring our recommendations based on your unique financial situation, will always consider your feelings about risk and the markets as well. If you or someone you know would like to review your current portfolio with one of our advisors, please call us at (908) 583-8603, email us at pwm@prestigewmg.com, or click the button below to schedule your consultation today!

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