Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Federal Reserve is expected to raise interest rates again next week as it continues to try to cool inflation. The silver lining is that when lending rates rise, savings rates also rise. It’s not unusual now to see certificates of deposits with 4% or 5% annual yields locked in over 12 to 24 months. Money market accounts are now paying healthy returns as well. Millennials and members of Gen Z should take note, because they probably haven’t experienced interest rates this high for savings in their adult lives.
It’s difficult to get many Americans to put away an appropriate amount of money for retirement or a financial emergency. Late last year, Congress passed a significant revision to the rules for retirement plans with the intent of extending and expanding your saving opportunities and ability to put away money for retirement. It’s not just for folks preparing to hobble across the finish line. The changes also can help people still paying off their college loans and those who need to establish their first emergency funds.
For this week’s podcast, IBJ columnist Pete Dunn, aka Pete The Planner, explains these new opportunities for savings. He also shares a tip for avoiding an interest-rate trap that current homeowners could fall into if they try to level up on housing.
Click here to find the IBJ Podcast each Monday. You can also subscribe at iTunes, Google Play, Tune In, Spotify and anyplace you find podcasts.
You can also listen to these recent episodes:
IBJ Podcast: At Legislature’s midpoint, which bills survived and which bills are toast?
IBJ Podcast: Is downtown safe? Ask two business owners who reached different conclusions.
IBJ Podcast: Downtown fixture Wheeler Mission on verge of big transition
IBJ Podcast: He stitched handbags in his Irvington basement, and now it’s a $1M business
IBJ Podcast: Amy Brown’s unusual route from family studies to tech CEO
IBJ Podcast: A look back at celebrated Indy jazz guitarist Wes Montgomery
Looking for another podcast to try? Check out IBJ’s The Freedom Forum with Angela B. Freeman, a monthly discussion about diversity and inclusion in central Indiana’s business community.
Please enable JavaScript to view this content.
Pete has the 529 rollover wrong. It is only to the beneficiary, not the owner of the account.
Robert, you are correct. I misspoke and didn’t realize it until after the fact. Thanks for your vigilance.