It's impossible to forget the financial crisis of 2007-2008. Large investment banks failed, the government had to bail out financial institutions and other huge corporations, and Americans saw the values of their homes drop significantly. The Federal Reserve responded with a new economic policy, and many elements of those changes are still in place a decade later. Here are 4 basic strategies for making your money grow in our low interest rate economy.
You’ve probably noticed in the news that financial advisors offering retirement products and services are required to put their clients’ interests first as of 9 June 2017. This new regulation, known as the Department of Labor (DOL) Fiduciary Rule, won’t be enforced until 1 January 2018. To comply with the rule, brokers must transition their retirement products and services to the DOL fiduciary standard from the suitability standard required by Financial Industry Regulatory Authority (FINRA) Rule 2111, which allows them to offer their clients solutions that may not necessarily be in their best interests.
The market continued its steady advance, albeit with fits and starts during the month. The 1.6% “correction” of May 17 – the biggest losing day of the year so far - lasted all of one day. Anyone trying to time that decline missed it if they blinked. By the end of the month, the S&P 500 was up 1.4% (8.66% YTD), thanks to technology driven names that now comprise nearly one-fourth of the index.