Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Apr 05, 2022

Investors in Tampa, Florida, are experiencing interest rates higher than they have been in several years. Short-term rates fell to a historic low of nearly 0% during the 2008 financial crisis, and those low rates continued for several years. While they had begun to creep back up again, the economic effects of the COVID-19 pandemic caused them to drop almost to zero again to encourage spending.

Short-term interest rates are now projected to reach just under 2% by the end of 2022. But what does that mean for investors? If the federal interest rate increases, it affects investments of all kinds. You may be paying higher interest rates on mortgages, but you will receive higher interest payments on your savings and bonds.

Financial planning experts recommend that investors act now to take advantage of low-interest rates before the rise to 2% or even 3% or more over the coming years.

What should I do to take advantage of interest rate increases?

Here are three moves that the CERTIFIED FINANCIAL PLANNER™ professionals at ProVise recommend considering taking advantage of interest rate increases:

  1. Invest in real estate trusts — Real estate prices tend to go up alongside interest rates. Now would be a good time to invest in tangible real estate or in real estate investment trusts, which are a more liquid investment. Real estate trusts are easier to buy and sell in the market and are relatively immune to inflation.
  2. Lock in credit card rates — If you are paying off credit card debt, consolidating your debt by transferring them to a zero-rate balance transfer card that locks in a 0% interest rate. These rates normally last 12 to 21 months, giving you an opportunity to pay down your debt before you have to feel the sting of higher interest payments.
  3. Make major purchases now — If your small business has a major purchase on the horizon, now may be a better time than later to make that investment. Locking in low interest rates now will save your company money over the course of your loan.

Talk to a ProVise CFP® professional about taking advantage of rising interest rates

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 

100% of the fee paid.

Are you ready to talk to a professional about the best investments for increasing interest rates? Contact ProVise today to schedule a complimentary consultation.