On this episode of “On the Money,” the Ruedi Wealth team discusses rising interest rates and why people seek expert advice.
(1:30) Interest Rates
“Yes, interest rates are probably going to be going up, but you have to keep in mind that’s already incorporated in to market prices. Anything that’s known or even expectations of the future are going to be baked into market prices.”
- David Ruedi, CFP®, RICP®
“It is a sign of strengthening economy that the Fed thinks it can raise interest rates, and it gives them a tool in their back pocket in case something really terrible happens in the future they now have the ability to lower rates down.”
- Ryan Repko
(11:46) Why People Seek Expert Advice
To Reduce Complexity:
“Anyone who goes to see a financial advisor is the type of person that doesn’t want to do things on their own. They don’t want to spend the time or energy and learn everything. There is so much involved in financial planning or retirement planning.”
- David Ruedi, CFP®, RICP®
“We see a lot of clients who come in who after 30 or 40 years of investing have what is called “the junk drawer of investments.” They may not be aligned or working together.”
- Ryan Repko
To Take Action:
“I think it comes down to human nature – any time there is a big decision at hand or any time the implications are large, it causes you to drag your feet because naturally you may be hesitant to jump into a decision too quickly.”
- Ryan Repko
“People almost always ask what is your biggest competition in town, and I almost always say ‘people doing nothing’”
- Paul A. Ruedi
“One of the issues related to taking action is actually investing in the portfolio that you should be invested in. This often happens when people get a lump sum – they have money that really needs to be invested at least partially in the stock market – a lot of people have trouble pulling the trigger on that, especially during all-time highs.”
- David Ruedi, CFP®, RICP®
To Save Time:
“I think more so than saving the time on managing an investment portfolio. It is more about the time saved on developing the expertise you need to create a sound financial plan or retirement plan if you’re retired. Most people would rather not spend hours reading finance books or going through an education course on how to develop a retirement plan.”
- David Ruedi, CFP®, RICP®
Disclaimer: Past performance is not an indication of future results. You should not make any investment decisions without first consulting your own financial advisor and conducting your own research and due diligence.