How To Prepare For Looming Interest Rate Hike

PALM BEACH GARDENS, Fla. - Sept. 22, 2015 - PRLog -- Short-term rate hikes impact everything from how much one may pay to borrow money to how much interest one may earn on a money market account.

Although the Fed didn't raise rates (as anticipated) recently, it doesn't mean it's not coming... it is. And rather than wait like a sitting duck, smart and savvy investors can prepare themselves for the inevitable.

According to Mike Larson of Weiss Education Services, "Now is a great time to get wise to how markets, loans, deposit products, and more are likely to react whenever the Fed does make its move."

He ads, "There are some things you can look out for and do to get ready. For instance, expect more volatility in stocks and bonds. The Fed’s stable rate policy has helped to suppress volatility across all asset classes. That’s ending."

Larson continues, "Expect rates on variable rate loans to rise with each federal funds rate hike. Variable-rate credit cards and home equity lines of credit (HELOCs) are often priced off the prime rate, which moves in lock step with the funds rate. So you may want to consider transferring any balances to a fixed-rate credit card. Or if you have a HELOC with a large balance on it, check to see if your bank offers a fixed-rate option."

Larson concludes, "It's possible to get a leg up on many investors, borrowers, and savers. It will help prepare you for what the Fed is about to dish out, and take advantage of the resulting volatility."

These are only two out of five 'Interest Rate Cheat Sheet' actions. To read the full list of what to do during rising interest rates, visit http://www.weisseducation.com/your-cheat-sheet-for-rising....