Money Matters Podcast

Homebuyers braving the hot U.S. housing market have run headlong into a striking transition. The average interest rate for a 30-year fixed mortgage jumped from around 3.2% at the beginning of 2022 to 5.3% in mid-May, the highest level since 2009. This rise was sparked by the Federal Reserve's commitment to raise the federal funds rate — a key benchmark for short-term interest rates — to help control the highest inflation in decades.

When inflation began rising in the spring of 2021, many economists, including policymakers at the Federal Reserve, believed the increase would be transitory and subside over a period of months. One year later, inflation has proven to be more stubborn than expected. It may be helpful to look at some of the forces behind rising prices, the Fed's plan to combat them, and early signs that inflation may be easing.

During the intensely volatile first 100 trading days of 2022, the stocks of companies in the S&P 500 index delivered their worst performance since 1970.1 The S&P 500 continued to tumble, and the benchmark index descended into a bear market — typically defined as a sustained drop in stock prices of at least 20% — on June 13, 2022. When the market closed, the S&P 500 had dropped 21.8% from its January 3 peak, and the tech-heavy NASDAQ, already in bear territory, had plunged 32.7% from its November 19, 2021 peak.

Raising the federal funds rate places upward pressure on a wide range of interest rates, including the cost

of borrowing through bond issues. Regardless of the rate environment, however, bonds are a mainstay for

investors who want to generate income or dampen the effects of stock market volatility on their portfolios.

You may have questions about how higher rates could affect your fixed-income investments and what you

can do to help mitigate the effect in your portfolio.

Keeping your cool can be hard to do when the market

goes on one of its periodic roller-coaster rides. It's

useful to have strategies in place that prepare you

both financially and psychologically to handle market

volatility. Here are 11 ways to help keep yourself from

making hasty decisions that could have a long-term

impact on your ability to achieve your financial goals.

You may have lost your job already, or it's something

you're concerned about. Either way, the keys to

surviving a job loss financially are to plan ahead, take

stock of your income, and cut your expenses.

With age comes responsibility, so if you're a young

adult in your 20s or 30s, chances are you've been

introduced to the realities of adulthood. While you're

excited by all the opportunities life has to offer, you're

also aware of your emerging financial responsibility.

During your working years, you've probably set aside

funds in retirement accounts such as IRAs, 401(k)s,

or other workplace savings plans, as well as in

taxable accounts. Your challenge during retirement is

to convert those savings into an ongoing income

stream that will provide adequate income throughout

your retirement years.

Mike and Matt discuss the importance of planning for retirement.

Mike and Matt bring in Estate Attorney, RaQwin Young from The Law Office of RaQwin Young, LLC in Golden to speak on why you should have your estate planning in order no matter your age or wealth.