Reduce Your Duration to Floating Rate Turbulence – Not all banks lend on the prime rate. Seek relationships with banks or brokers like us who know how to find lenders who use other indices to make your business or commercial real estate project more resilient.
Create an Inflation Hedge – Find assets and sectors that have a high correlation to inflation which means they will stand up better to interest rate increases. Thinks about REITS or being an investor in a floating rate loan for a business or real estate project.
Ask your investment advisor about Series I Savings Bond – The maximum investment is $10,000, but the current yield is 9.62%.
Pay-Off Credit Card Debt – Use the snowball method if you can’t pay it off all at once.
Speak with experts who have been through previous inflationary cycles. If you are under 35 or have a new business, you have only experienced a low-rate environment. Find an expert to show you what available products to help you through this challenge.
Communicate – For commercial real estate projects, make sure you have ironclad guaranteed maximum price (GMP) contracts and maintain high levels of communication with your contractor. For business owners, maintain the same level of communication with vendors and suppliers to prepare for cost increases and allow you to adjust your prices.
What else do you want to know? Drop it in the comments.
