Netflix released Season 5 of The Crown, a sweeping history of the British Royal Family on November 9. The Crown Season 5 is released just two months after Her Majesty, Queen Elizabeth II’s death on September 8. This marked the end of the 70-year reign of the monarch and the beginning of the third Carolean period, that of King Charles III, her son. This is the first time Britain had a monarch since Elizabeth’s dad, King George VI died in February of 1952.
Cash is the king of the hill again after many years of historically low rates, not only in the United States, but also around the world. The Federal Reserve’s decision to raise rates in order to curb inflation has had a ripple effect on both borrowers and savings. The cost of servicing their debts has increased, which is having the intended cooling effect on the economic climate. The dollar, on the other hand, has become stronger, and we are finally getting some return from our cash reserves.
According to the New York Fed the effective Federal Funds Rate currently stands at 3.83%, up 0.75 % from last month. Some banks have resisted passing on rate increases to their customers, citing a lack of competition and a surplus of cash. Others have been more agile. Now is not the time to be complacent. It doesn’t matter if you have a longstanding relationship with a bank or credit union. You should still shop around for interest rates and see if your money can work harder than it has done in the past 15 years.
You can compare rates with your investments account in addition to your bank or credit-union. As new money is deposited, dividends are paid, and interest accrues, the cash in our investment accounts defaults to a core sweep position, which is a short-term, money market fund. You have multiple options to choose from with most brokerage firms, including oXYGen. If you make some quick changes to your core account, you may find you can earn 2-3% more than before.
Have a discussion with your advisor about how you can make a few changes to your investments, both inside and outside of oXYGen. This will help you get a bit more out of your investment in spite of the market’s struggles. As always, please let us know what we can do to continue helping you and those you care about.
God Save the King!
