 | Chris Senecaut is a Financial Representative for Modern Woodmen Fraternal Financial. As a company they will be lowering their rates effective December 27, 2011. All transfers must be made by that date to get their 3% guarantee and we will still have their guaranteed return of principal. Chris looks forward to helping you get through this economic downturn and prosper in the future. If you would like to learn more please call 620-724-0833. |
Banking & Finance
2011-10-20 11:06:47
Look into your IRA’s before January ‘12!
Q: I am thinking about starting an IRA. Do you have any recommendations or things I should consider?
A: Yes, absolutely. If you are going to start IRA, Roth IRAs, CDs and also interested in rolling over accounts, it’s in your best interest to do so before Jan 2012.
In an effort to boost the economy, the Federal Reserve sold $400 Billion of long-term securities for an equal amount of shorter-term instruments. This stimulus measure, dubbed Operation Twist, will be completed by June 2012 and will drive interest rates even lower, according to an ABC News Consumer Report.
If you shop around, you will be able to roll over your funds into a higher earning account and lock into a better rate before the interest rate is expected to fall in or soon after January of 2012. Since we are nearing the end of the year, time is of the essence as it can take as much as 30 days for rollovers to be complete.
According to the Federal Reserve’s Open market Committee, economic conditions warrant “exceptionally low” interest rates through mid-2013.
What does this mean for Americans in the general sense? While your savings will not add interest as quickly, lower rates will make it easier for you to borrow money to make large purchases such as cars and homes, which in turn stimulates the economy. Additionally, with interest lower, you won’t have to spend as much on interest, leaving more for other purchases.
