How many of us can look back at our childhood and say we wish we learned more about money? Maybe you were even one of those people who graduated college and still had no clue how to manage your money and pay off your debts? Most people gain their money skills and knowledge from their parents and caregivers as they grow and develop. Your children will learn their financial habits from watching you spend, save, borrow, and earn. Although you are the top influencer in their financial life, you don’t have to be a money expert to help them achieve positive and strong financial habits.
I recently issued a message to Conservatory Members about equity markets in a gradually rising interest rate environment. Today I will address bonds, which are commonly considered poor investments when rates are on the rise.
Return. We chase it. We measure it – daily, monthly, quarterly. We compare investments and investment managers based upon it. Newspapers, radio, television and, now, Internet media focus upon it. Like ‘plastics’ in the 1960’s movie The Graduate, it is the ONE WORD upon which everyone clings.
A new vehicle can be one of the biggest financial expenses you face, which is why you must explore your options before you make your final decision. When you break it down, there are really only two routes you can take: buy or lease. So the question is, which option better suits your lifestyle?
The bond market thinks the new administration in Washington will boost economic activity, and that the Federal Reserve will begin a program of raising interest rates. They may be right. Of course, higher interest rates have been predicted for years and kept falling. We’ll see.