Category Investing

As the Federal Reserve plans to cut interest rates soon, financial advisers are encouraging people to act now to protect and grow their money. Right now, savings accounts and certificates of deposit (CDs) are offering higher interest rates than usual, which means better returns on your savings. But once the Fed lowers rates, these returns will likely drop, so locking in the current rates is a smart move. Advisers also suggest rebalancing your investment portfolio to prepare for possible market changes. When interest rates go down, some bonds and savings products might not perform as well, and the stock market could become more unpredictable. Taking these steps now can help you avoid missing out on key financial opportunities.

With the Federal Reserve expected to cut interest rates soon, retirees need to adjust their money strategies to keep their income steady. When interest rates drop, new savings tools like CDs and bonds usually offer lower returns, making it harder for retirees to earn enough from these safe investments. That’s why financial experts suggest looking at bonds already on the market. These older bonds with higher interest (called "coupon") rates may rise in value because they pay more than new bonds will. This could be a good time for retirees to lock in higher yields or sell at a profit, depending on their needs. Rebalancing investments now—before any rate changes happen—is key to staying financially strong during retirement.

In her latest investment update, Suze Orman offers advice on staying smart with your money during uncertain times. Even though the stock market is doing well, she warns that things like inflation, new government policies, and the results of the 2024 election could still shake things up. Orman is confident the S&P 500 could hit 7,000 by the end of the year and recommends strong tech companies like Microsoft, Amazon, and Palantir. Her main message is that investors should think for themselves instead of just following the crowd or reacting to scary headlines. She also stresses the importance of keeping your investments flexible and spread out to stay protected no matter what happens in the economy.

The "4% rule" is a popular retirement strategy that suggests withdrawing 4% of your savings each year to make your money last about 30 years. However, this rule was based on past economic conditions with low inflation and stable investment returns. Today, things have changed. With high inflation, unpredictable markets, and new forms of investment like cryptocurrencies, the rule may no longer be safe for everyone. Experts warn about “sequence of returns risk,” which means if the market drops or inflation spikes early in your retirement, you could run out of money faster. Because of this, financial planners are encouraging retirees to adjust their plans and consider more flexible withdrawal strategies.

Even though the U.S. economy is showing signs of trouble—like high inflation, expensive loans due to high interest rates, and fears of a recession—the stock market keeps breaking records. As of August 2025, the S&P 500 has reached a new high of 6,469, pushing its price-to-earnings (P/E) ratio to 30, a number that usually signals stocks might be overpriced. This big jump in stock prices doesn’t match how much companies are earning, which can be risky and may lead to a market correction, or drop, in the future. Many investors believe the stock market is climbing because they expect the Federal Reserve to lower interest rates soon, making it cheaper to borrow money and encouraging more investing. But since the strong market isn’t matching up with the struggling economy, experts are warning that this disconnect could cause problems down the road.

As the 2025 U.S. election approaches, many people are feeling nervous about how politics might affect their retirement savings. Some recent actions by the Trump administration—like efforts to replace the head of the Federal Reserve and new rules that let people invest in riskier assets like private equity and cryptocurrency through their 401(k) plans—are making investors uneasy. While these changes could impact the economy, financial experts warn against making big changes to your retirement plan based on political news. Instead, they recommend staying focused on long-term goals, keeping your investments balanced, and not letting fear drive your decisions.