Redmount’s brief opinion on the Federal Reserve’s (Fed) decision to not move on rates

We think it probably won’t do anything good for markets

• Attention will now simply shift to “will they/won’t they” for their October meeting.
• There had been expectations for a “one and done” increase of 0.25%, but that became more and more unlikely given the market tabulations.
• That said, an increase to the fed funds rate of 0.25% would be a rational response to the probably very slow profile of rate rises over the next 12 to 18 months.
• Initial rate rises have typically been followed by continued equity market performance on average while the final ones usually brought economic contraction and earnings recessions resulting in stock market losses.
• And that’s what we’re concerned about, earnings trends. As history suggests, “don’t be afraid of the first interest rate rise, be afraid of the last one
•  In general, we remain concerned with market volatilities.

Know the Lifetime (and Retirement) Financial Equation

For a sound lifetime and retirement financial planning one needs to know its complex equation of contributing factors.

Make the most of the things that you can control but be sure to evaluate factors that are somewhat or completely out of your control.

Planning for retirement can be overwhelming as individuals navigate various retirement factors over which we have varying levels of control. There are challenges in retirement planning over which we have no control, like the future of tax policy and market returns, and factors over which we have limited control, like longevity and how long we plan to work.

The best way to plan for a secure retirement is to focus on the factors we can control: optimize saving, understand and manage spending and adhere to a balanced approach to investing.

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