Big news this week with the Fed lowering interest rates by 0.5 percent.

So what does it mean for you and your retirement?

The Good:

1. Lower Borrowing Costs: If you’re carrying debt, especially if it’s tied to a variable interest rate (like some mortgages or personal loans), you might see lower interest payments. This frees up more cash that can be redirected toward your retirement savings or other investments.
2. Boost to the Stock Market: Historically, rate cuts have tended to stimulate the stock market. Lower rates often encourage borrowing and spending, boosting corporate earnings and investor confidence. If your retirement portfolio is heavily invested in stocks, you might see short-term gains.
3. Cheaper Access to Capital for Business Owners: For those of you who own businesses or are looking to start one, borrowing for expansion or startup costs may become more affordable. This can provide additional income streams for your retirement.

The Bad:

1. Lower Returns on Safe Investments: A cut in interest rates typically leads to lower returns on fixed-income investments like bonds, CDs, and savings accounts. For those nearing retirement or already retired, this could mean reduced income from traditionally “safe” investments, which many rely on for stability.
2. Another Indicator for market downturns: Creates a trifecta of major market indicators regarding where the economy is going. (see more below)
3. Rising Inflation Concerns: Rate cuts are often designed to boost economic activity, but they can also increase inflationary pressure. If inflation rises faster than your retirement income, it could erode your purchasing power over time, especially if you are on a fixed income.

    

Here are of a few of the major market indicators to be aware of:

The 10Yr/2Yr treasury yield curve has un-inverted…

In the past 6/6 times this has happened since 1980, we’ve gone into a recession…

The “Real-time Sahm Rule Recession Indicator” has triggered…

And now the US has just made its first interest rate cut since the massive hikes, which has always marked the beginning of a recession…

This is not to strike fear in you by any means, there is enough of that in the media already.

This is simply a reminder that now is the time to reposition your assets. First to protect and then to position for profit.

Can you imagine if you have money and credit after the 2008 market crash? What would you have done differently?

Maybe by some more real estate, gold, stocks etc.

Your life could be exponentially different today.

If you are paying attention you could have a once in a lifetime opportunity here.

If we can help get your assets protected and position yourself for massive growth, please let us know.

Act responsibly, and act quickly.

Now is your time!