Most of the content we focus on for the podcast is stuff that can benefit people anytime they listen, but this week we want to focus more on the present and the pressing financial topics that everyone is thinking about. To help you better understand what is worth paying attention over the next four to six months, Nicholas J. Colantuono, CFP® joined the Money Wisdom podcast to discuss current economic trends.

Market volatility has been a significant concern for many, especially with the upcoming election. While this year might feel different, it’s good to remember that the market is inherently volatile and having a solid financial plan can help mitigate some of the stress. Those that are close to retirement need to reassess their exposure to market risks and possibly hit the reset button on their investment strategies.

Interest rates have also been a hot topic. After years of enjoying historically low rates, we are now facing a different reality. Nick shares a personal story about his parents refinancing their mortgage at 10.5%, which puts today’s rates into perspective. While rising interest rates can be a burden for borrowers, they can actually benefit savers, making safe investment vehicles more attractive. Now the Federal Reserve has made its first rate cut in years, which will have an impact on a wide range of planning areas that you’ll want to keep an eye on.

Household debt is another area of concern. The pandemic and subsequent stimulus checks have led to increased consumer spending, but this has also resulted in record-high levels of debt. While the cost of living has increased, wages haven’t kept pace, leading many to rely on credit cards and loans to make ends meet. This is particularly challenging for younger generations, while baby boomers, who are more focused on saving, may find some relief in the current interest rate environment.

The job market has also seen significant shifts. A couple of years ago, employers were desperate for workers, but now it seems the tide has turned. Companies are receiving more applications, and the quality of service is improving as a result. However, the rising cost of living means that people need to earn more to maintain a decent quality of life, adding another layer of complexity to financial planning.

If any of these trends worry you, now is the time to talk about your plan with an advisor. You can also take advantage of our “Are You Ready to Retire?” starter kit to help you assess your financial readiness. Simply text “KIT” to 807 570436 to get started.

Here’s some of what we discuss in this episode:

• The stock market continues to be volatile but will things change as we get to the election and past it.

• The conversations we’re having with clients about interest rates and what to expect.

• The world we live in has gotten more and more expensive and it has led to personal debt soaring.

• What is happening in the job market?