The Federal Reserve just raised interest rates by 0.75% and plans to keep doing so until it is satisfied that inflation is under control, according to CNBC. What you should do about it, depends on where you sit.
- Investors. If you are investing in stocks and bonds to accumulate wealth for retirement, what you should do depends on how long before you retire. If you are not retiring for five or more years, buy a stock index fund as the Fed keeps raising rates and stocks go down.
- Savers. If you are retiring sooner than that or you are already retired, put your money in an online savings account. It will not let you keep up with inflation but it will somewhat minimize the damage.
continue reading »