If you've ever wondered "why do interest rates move and how does it impact me?” this episode is for you.

We gave Michael CFP®, EA a challenge: can he explain how and why interest rates change? This impacts everyday lives so we're interested to know. How come so quickly a mortgage rate goes up? Could it come back down?

We asked Michael to explain it so that a 10‑year‑old might get it! How do we think he did? It'd have to be a pretty smart 10-year old! But I think we're catching on.

In this episode we explore why interest rates move, why they can affect mortgages and car loans, and why the bond market pays very close attention every time the Fed clears its throat.

It is all the real world stuff that shapes buying a home, running a business, saving for retirement, and figuring out whether your cash may want to sit tight or get to work. And yes, we keep it friendly and curiosity driven so you can walk away feeling like this finally makes sense without needing a PhD in economics.

Topics:

💭 Why interest rates matter in everyday life

💭 What the Fed funds rate actually is

💭 A candy bar example

💭 Understanding risk and return in simple terms

💭 Why the US Treasury can play a pivotal role on your life

💭 How rising rates may affect mortgages and car loans

💭 How rate changes can impact the bond market

💭 Why businesses care about borrowing costs

💭 Inflation, unemployment, and the Fed’s balancing act

💭 What rising or falling rates may mean for savers

Chapters:

00:00 Why Does the Fed Funds Rate Matter?

00:38 How Rates Work Using Real Life Example

02:45 Potential Risk Involved?

03:51 Impact of the Fed Fund Rate on Loans?

05:53 Increasing Offer Because Other Rates Have Gone Up

06:34 Summary of Why Fed Funds Rate Actually Matters

07:30 Are There Different Levels of Ratings for Loans?

08:25 What to Consider Doing When Interest Rates are Moving?

09:20 How Interest Rates Could Effect People?

10:25 Where May Interest Rates Go From Here?

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.