Weak Economy Continues to Provide Opportunities

There’s Still Time to Capitalize on Low Interest Rates

By Tom Kirk, CPA-PFS, president and Founder, FirstWave Financial

The new jobs added by our economy over the first quarter of 2015 have been underwhelming, to say the least. The Department of Labor indicated 126,000 new jobs were added in March, far less than expected, and that the numbers reported for January and February were revised and may even be flat.

That all sounds like pretty bad news, and while it could certainly be better, opportunities still exist.

Due to the apparent weakness in the economy the Fed is likely to further delay the long anticipated increase in interest rates. But they will eventually increase interest rates, once they see the economy is on a growth trajectory that can handle it.

This means the next few months may be the last opportunity to take advantage of the lowest interest rates in modern history. Here are some ideas to consider:

  •  This could be a great time to sell a home. We are entering into the cyclical buying season for people who want to move their family between school years and the currently low interest rates makes higher purchase prices more affordable in terms of monthly payments. These two factors could enable you to get a very good sales price for your home.
  •  If you have a variable rate mortgage, you may want to consider a fixed rate mortgage while rates are still so low. A 15-year, fixed rate mortgage can still be obtained with an interest rate of less than 3% for the life of the loan.
  •  There are some very powerful estate planning techniques that work best when interest rates are low. Interest rates are so low now that the amount of estate tax that can be saved using these techniques seems almost too good to be true. These results are not only true, but legal and defendable. However, their power will be significantly reduced in the near future when interest rates go back up as expected.

Interest rates have been very low for a long time and it seems like we have been forever hearing that they have got to go back up soon, but they have not done so … yet. If you have not captured this unprecedented low cost of capital into your wealth building strategies, time may be running out. Contact one of our WealthCoaches TM today to be sure you are taking advantage of this soon-closing window of opportunity.


About the Author: Thomas L. Kirk

CPA-PFS President, Founder and WealthCoachTM

FirstWave Finacial Tom Kirk

  • Certified Public Accountant
  • Personal Financial Specialist
  • Financial Planning Association Member
  • University of Florida, BSBA