How to take advantage of the low interest rates environment

Watch Shawn Hirsch CFP®, Wealth Management Partner of Signet Financial Management, explain how you can take advantage of the current lower interest rates for mortgages and automobile loans. Potentially investing your down payments back into the stock market and taking on low interest rate loans could help you hedge against interest and help you build your wealth into the future.

Decreasing mortgage interest rates

Over the past 20 years interest rates on mortgages have been decreasing, so much so that it has seen record lows. Currently, the interest rates are around 3%, Shawn explains.

Furthermore, the interest has the possibility to be deducted from your taxes by using the interest on the mortgage versus prepaying for it.

Closing in on low interest automobile loans

When it comes to automobile loans, we understand that the cars themselves depreciate very quickly. But, given this fact you can still use this to your advantage if you secure in a 0%, 1%, or 2% loan on your vehicle, and use that capital that you would otherwise use to make a down payment on the vehicle, to invest into the market. Even with average returns, you can expect to arbitrage the interest rates and using it to build your wealth.

No matter your current financial goals, it is always important to keep in mind the current interest rates in order to take advantage of them while you take on new mortgages or loans. Nobody wants to think about a car loan or mortgage looming over their head as they prepare to retire, or are in retirement. Why not utilize the current market environment to help eliminate risk and stress to the best of your ability?

Signet Financial Management, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission and serves as a fiduciary. Signet advisors will help you with:

  • Financial planning
  • Investment strategies
  • Tax planning
  • Retirement planning
  • Insurance planning
  • Estate planning

To protect and grow your wealth is our mission.

Need help with saving for retirement?  Please contact us, Shawn Hirsch or to schedule a time to talk.

Want to learn more? Stay tuned into our insights for more articles, videos, and resources provided by our trusted professionals of Signet Financial Management.

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