The market has experienced a rocky couple of weeks. In fact, the Federal Reserve took the emergency step of cutting the Fed Funds Rate by half a percentage point this past Tuesday. This comes, in part, as a response to market fluctuations due to a financial fallout from the coronavirus.
It’s normal for us, as consumers, to react when a dip such as this occurs which is why we are reaching out. You may have concerns about how these market changes will affect you and we want you to know that we’re a resource for you.
What Fed rate changes mean for you
The Fed’s decision to raise or lower rates affects financial products that are tied to the Prime Rate. While we recommend not overreacting to this rate correction, we do encourage you to review your current rates to ensure they are still in line with your financial goals. A rate drop, such as this, means that our mortgage loan rates remain at all-time lows. It may be a good time to consider buying or refinancing a house.
We also offer several options for low-risk investing. If you’re looking for guaranteed earnings, I encourage you to review our savings and money market accounts. We are still offering competitive rates while protecting your investments from market volatility.
Previously, we published an article explaining how rate changes affect you, describing these changes for credit cards, home equity products, auto loans, savings accounts, and mortgages. Please take a moment to review this information and let us know if you have any questions about your specific situation.
What to do with investments
When it comes to investments you may have that are affected by stock market performance, you should speak with your financial advisor on the best course of action. If you need a second opinion, Rahil Machiwalla, financial advisor with CUSO Financial Services, L.P.*, is available to meet with you for a complimentary consultation. He can answer questions you have about the market and your specific financial plan. Schedule an appointment to speak with Rahil by visiting 1stunitedunitedcu.org/investments.
This is an excellent time to remind ourselves that periods of high volatility such as the last few weeks, while unsettling, are completely normal. But we understand that you may have questions. We welcome your call and are happy to walk you through your options. Simply give us a call at (800) 649-0193 or stop by your local branch. We are here to help.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the Credit Union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to Credit Union members. Please consult a qualified tax advisor for specific tax advice.