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Financial planner in Kansas City talks about what to consider with latest rate hike



The Federal Reserve board increased interest rates by three-quarters of a point on Wednesday. This has a big impact on home and car loans, credit cards and investments.It’s the fifth time the Federal Reserve has raised interest rates this year.”The thing to do, though, is to stay calm, make sure you balance the risk,” said Bud Kasper, a certified financial planner with Barber Financial Group.Kasper recommends that you “de-risk” your portfolio, take a second look at your money, and consider shifting assets from stocks to treasury bonds and certificates of deposit.”We’ve been going in and looking at U.S. Treasury bonds, looking at CDs once again,” Kasper said.What worked last year may not work this year, Kasper added,”Let’s say in their 20s and 30s and even 40s, it’s time for you to start understanding that it’s not a make it, place it and forget it situation. You really need to start managing your assets,” he said.Kasper recommends shifting to strategies that serve you best, such as looking at IRAs, company matching programs, reducing spending and paying down debt.”The way you deal with your debt is really going to tell you what your future is going to be like,” Kasper said.Sacrifices now could pay out big later.”The Federal Reserve can’t keep doing this because if they continue in this direction, we will be in a recession and it could be an elongated recession,” Kasper said.The Fed’s projections currently indicate that it could raise rates another 1.25% before the year ends. Inflation is an issue throughout the world. In the U.S., inflation is up about 8% from last year. The Federal Reserve has said it wants to get it down to 2% by 2025.

The Federal Reserve board increased interest rates by three-quarters of a point on Wednesday. This has a big impact on home and car loans, credit cards and investments.

It’s the fifth time the Federal Reserve has raised interest rates this year.

“The thing to do, though, is to stay calm, make sure you balance the risk,” said Bud Kasper, a certified financial planner with Barber Financial Group.

Kasper recommends that you “de-risk” your portfolio, take a second look at your money, and consider shifting assets from stocks to treasury bonds and certificates of deposit.

“We’ve been going in and looking at U.S. Treasury bonds, looking at CDs once again,” Kasper said.

What worked last year may not work this year, Kasper added,

“Let’s say in their 20s and 30s and even 40s, it’s time for you to start understanding that it’s not a make it, place it and forget it situation. You really need to start managing your assets,” he said.

Kasper recommends shifting to strategies that serve you best, such as looking at IRAs, company matching programs, reducing spending and paying down debt.

“The way you deal with your debt is really going to tell you what your future is going to be like,” Kasper said.

Sacrifices now could pay out big later.

“The Federal Reserve can’t keep doing this because if they continue in this direction, we will be in a recession and it could be an elongated recession,” Kasper said.

The Fed’s projections currently indicate that it could raise rates another 1.25% before the year ends.

Inflation is an issue throughout the world. In the U.S., inflation is up about 8% from last year. The Federal Reserve has said it wants to get it down to 2% by 2025.



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