What the Fed Cutting Interest Rates Means for You

August 8, 2019

The Principle:

The Federal Reserve recently cut interest rates for the first time in over a decade and it comes as no surprise that the news has been in the headlines. Should we be concerned about this decision and what it means for the economy? This is also a reminder that we should always be investing to outpace inflation and we’ll talk about that as well.

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

Last month, the Federal Reserve made the decision to cut interest rates for the first time since 2008 and it’s raised some eyebrows in the financial world. The headlines might have caught your attention as they did us. Rates are tied closely to the economy so it’s natural to wonder what this news means for the future. In this episode of Retire with Integrity, Brian Bowen walks us through these Fed cuts and how they impact the country. That also takes us to the topic of inflation. We sprinkle in a little movie trivia to begin the conversation and Brian uses a client story to show why it’s so important to invest in a way that keeps you ahead of inflation. We’ll also do a little math before the show’s over to show you how it all could play out in retirement. Listen to the entire episode above or click the timestamps below to hear a specific section. [0:16] – The recent headline that caught our attention about rate cuts. [0:41] – What the headline means what a rate cut means for the economy. [2:57] – First rate cut since 2008 [3:30] – Should you be concerned when the government makes these changes? [4:24] – Avengers: End Game review [5:01] – Movie trivia [5:38] – How do you handle inflation and keep it from taking a big bite out of your portfolio? [6:29] – A client came in with a variable annuity that returned very little after fees. [8:41] – Make changes to outperform inflation. [10:26] – Doing some math to figure out what returns you need.

Today’s Truth:

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The Host:

Brian Bowen – Contact