As we approach September, all eyes are on the Federal Reserve’s anticipated interest rate cut. This pivotal moment presents both opportunities and challenges for investors. As your behavioral financial advisor, I’d like to share three key moves to consider before this shift occurs. 

Reassess Your Debt Strategy 

First, take a close look at your debt, particularly variable-rate loans. With rates potentially dropping, it might be tempting to wait for lower rates before refinancing. However, the initial cut is expected to be modest – around 0.25%. Instead of waiting, consider consolidating high-interest debts now and prioritize paying off debt. This proactive approach could save you more in the long run, especially if you’re carrying credit card balances with rates near 25%, as many people are these days. 

Lock in High-Yield Savings Rates 

Next, don’t overlook the current attractive rates on high-yield savings accounts and CD’s. Some are offering rates of more than 5.0 % currently. While these rates may dip following the Fed’s cut, securing a favorable rate now can help maximize your short-term savings. Act swiftly to capture these higher yields while they last. 

Stay the Course with Long-Term Investments 

Lastly, resist the urge to make drastic changes to your long-term investment strategy. It’s natural to feel compelled to adjust your portfolio in anticipation of market shifts. Instead, maintain your focus on your long-term goals. If you’re investing for retirement, continue to think in terms of 5, 10, or even 20-year horizons, depending on your situation. 

Remember, financial decisions should align with your personal circumstances and goals. While these tips provide a general guide, your unique situation may require tailored advice.  

As always, I’m here to help you navigate these changes and ensure your financial strategy remains robust in the face of evolving economic conditions. Please reach out anytime.