Higher interest rates are good for those of us who have planned accordingly. If you think about it, the only bad thing about higher interest rates are people expecting them to stay low forever. We’ve had a low-interest rate environment for years! If you haven’t taken advantage yet, that’s your fault.
The current, low-interest rate environment isn’t even real. It’s the financial world’s version of steroids, which are illegal in most organized settings. In this case, the Federal Reserve and national Banks have made us all believe we need the steroids to heal our injuries or we’ll never play another day in the big leagues. Now, we’re hooked. Like junkies.
We would be better off getting away from the “juice” and letting reality set in, whatever that may be at this time. Assuming that would cause higher interest rates, here is why that wouldn’t be so bad:
– Mainstream media would have you believe a cool-off in the housing market would cause another recession, but I think it would slow demand down just enough to allow regular people to buy homes again…
– Risk-off finally! If we can go to the Bank and get a 3-4% CD, wouldn’t that be nice? To get that now, we have to take a TON of risk.
– People think rising mortgage rates would destroy people’s ability to save, but if you buy your home properly, like we teach in The Life Plan, then you aren’t house-poor. Meaning, you have money saved that will now earn more interest in a compounding fashion while you pay simple interest back on your mortgage. In the long-run, good news for you.
The TRUTH is, higher interest rates are good for you, but not good for the Government, not good for the Big Banks and not good for Wall Street. Those reasons alone are why it’s going to be so hard for us to get off the “juice”. But don’t believe the hype… When that day comes, it can be a good day for you, so long as you’ve planned for it like we teach in The Life Plan.
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