QE3 – What Does It Mean For You?

Some of the clients I’ve met with recently had some excellent questions about financial topics in the recent headlines.  It’s important to me to keep you informed on relevant information, and how it may impact your plans, so I thought you might find this information helpful.  Helping you with your financial plans has always been our number one priority at Riley Wealth Management, LLC. You rely on us to help you with that, and we greatly value your confidence.

Here are some articles that you might have seen recently:

New York Times, Sep 27, 2012: Bankrate: Mortgage Rates Plummet as QE3 Kicks Off *

Wall Street Journal, October 3, 2012: Small Businesses Fear Fiscal Cliff Awaits at Year End*

If you’ve wondered what this means for you, and your business, you’re not alone. The ongoing changes in the financial world continue to create concerns about what the future holds.

“Quantitative Easing” (QE) is a strategy that the Federal Reserve can use to try to jumpstart the economy. Even with historically low interest rates, the US Economy hasn’t really rebounded from the dips of 2008. Basically, the Federal Reserve infuses money into the economy by buying up Treasuries or mortgage-backed securities from commercial banks. This is the third time that the Federal Reserve has used the QE strategy, and results have not been as impressive as hoped.

It appears that interest rates may be low for another 18 to 24 months. As of this writing, the top national rate on a CD has an APY of 1.10%, with a minimum deposit of $25,000. A number of my other clients have been “waiting on the sidelines” to see what would happen to interest rates – the QE3 move by the Federal Reserve, in my opinion, sends the clear message that low interest rates are here to stay.

The “fiscal cliff” refers to both series of tax increases and spending cuts that are set to take place at year end (as part of the negotiations to raise the debt ceiling) and the Bush era tax cuts that are scheduled to sunset at the same time. Though it is possible for these to be averted, popular opinion seems to be pessimistic that our leaders will be able to reach an agreement in time.

What does that mean for you?

It’s time to take a fresh look at your retirement and insurance needs. There are still a number of strategies that can be implemented to help you be prepared for possible changes in the coming year. I want to give priority service to my most valued clients, and invite you to book an appointment for a review of your current plans.

Please contact our office at 817-870-4680 for a convenient time. We look forward to seeing you soon!


Brie Horigan

Securities offered through Silver Oak Securities, Inc. Member FINRA and SIPC. Advisory Services offered through Riley Wealth Management, LLC. Silver Oak Securities, Inc. and Riley Wealth Management, LLC are not affiliated.

* These links are being provided as a service to you.  Please note that the information and opinions included are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Riley Wealth Management, LLC.

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