September 9, 2022 – With interest rates rising from significantly depressed levels, there is some ability to earn more than the next-to-nothing that’s been available in cash equivalents for quite some time.
While we all know interest rates have risen swiftly and significantly this year, some parts of the yield curve have moved more than others. More recently, very short-term rates have been rising, which impacts cash-like markets such as savings accounts, money market funds, and CDs. As opportunities arise to get higher yields without taking on undue risk we are acting and moving clients into higher yielding money market funds. If you have any questions about your personal situation or are thinking you have too much or not enough cash buffer, please let us know.
Our government has also passed the Inflation Reduction Act and student loan relief. While the jury is out if there will be any significant impact on inflation from either, there is significant incentives for, and investments in, clean energy and electricity and personal student debt reduction/repayment relief. We are focused on helping clients that may qualify for some type of benefit from either piece of legislation. Again, if you think there are planning opportunities for you to explore, and we haven’t reached out to you yet, please feel free to reach out to your team and we’re happy to discuss.
We will share more in our October Quarterly Markets Review communication. For now, stay cool, and enjoy the rest of your summer!