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  • Writer's pictureNate Baim, MBA, CFP®

What Lower Interest Rates May Mean For Your Financial Plan

Enjoy this week's edition of the Planner's Beta

Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.

Something Fun

We enjoy visiting the Central Cascades. The area hosts Mt. Jefferson, Three Finger Jack, Mt. Washington, and the Three Sisters. More and more people visit the areas surrounding these mountains each year. To help better manage the land, the U.S. Forest Service is implementing a new permitting system this spring. If you are visiting this part of Oregon anytime this summer and have plans to experience the wilderness areas near these sites, be sure to visit the Willamette National Forest website to learn how to attain your permits. Visit the Willamette National Forest for more information.

Something About Pursuit Planning and Investments, LLC

Did you know Pursuit Planning and Investments helps Gen X and Y plan their life's pursuits? Most people think, "I have no money to invest, so I can't get a financial plan." This statement is not valid. Not only can I manage investment portfolios, but I also provide financial plans (no investments needed). I provide financial planning as a separate service from investment management (and no - I don't sell life insurance or products). I help individuals and families with the pressing items in their financial life. I help folks manage student loan debt, plan for the growth of their family, get a handle on their spending, and navigate their goals. Learn more about Pursuit Planning and Investments here.

Something about Financial Planning

The Federal Reserve cut interest rates last week. A cut in interest rates may pose an opportunity for many households. The big one is for those who may refinance their home loan or for those looking to take out a mortgage to buy a home. For those looking to get a lower rate, it generally makes sense to refinance if you expect to save one to two percent on your current mortgage rate. It may also make sense if you are going from an ARM to a fixed loan. For those looking to buy a home, lower interest rates mean you will spend less on interest over the time of your mortgage. However, for those looking to buy a home, be sure to consider your circumstance carefully. A low rate is an excellent incentive to buy a home. However, it is not the only variable you should consider. Be sure the home purchase fits into your entire financial plan. To understand the issues you should consider when purchasing a home this year, view this checklist.

Something about Investing / Economics

Markets continue to whipsaw. Uncertainty surrounding Covid-19 continues to weigh on investors' minds. The spread of the virus is truly unfortunate. However, it is essential to understand market swings are normal to experience. And looking at historical data helps us understand the current market swings with greater context. A 10% decline in the market, on average, occurs at least once a year. And a 20% decline, on average, usually occurs every six years. The last time we experienced these kinds of drops was in December of 2018. Sure it is tough seeing the swings, but a well thought out investment plan prepares investors for these kinds of fluctuations. To view some more interesting data points, view this Capital Group article.


Have something on your mind? Schedule a free call with Nate.


Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.


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