Saturday,
May 7, 2022
Top Story
The Week in Review
• US stocks rose after the Fed meeting, as investors may have been relieved to see the Fed take a less hawkish stance, even though the central bank raised rates by half a percentage point. The increased borrowing costs will have a ripple effect throughout the economy as a whole.
• Federal Reserve Chair Jerome Powell spoke after the FOMC released its policy statement, which also mentioned plans to begin offloading assets from the central bank’s balance sheet, possibly starting next month. Powell believes the economy has the ability to withstand higher rates, saying a “softish” landing was possible. Typically rate hikes come with associated risks to the labor market and the economy as a whole
• US stocks fell later in the week as the post-Fed meeting optimism seemed nowhere to be found. Thursday translated to the worst day for stocks in 2022. Analysts note the economy continues to face numerous headwinds, including the rising rate environment amid inflation, the war in Ukraine, and COVID-19 lockdowns in China.
• In this rising rate environment, consumers should be aware of how the Federal Reserve’s monetary policy decisions could impact personal and household finances. Changes in the federal funds rate indirectly affect various financial areas throughout the economy. An increase in the federal funds rate will likely lead to higher interest rates on personal loans, mortgages, credit cards, and student loan refinances. Read this article to better understand how this may impact you and your finances.
For more economic news and how it affects your money, visit the SoFi app.
How Do You Know If You Actually Need Life Insurance?
Life insurance is about protecting your loved ones so they won’t have to struggle financially when you pass away. And it can remove any burden they might have to take on if you’re carrying debt when you die.
If you’re unsure if you need life insurance, you’re not alone. Ask yourself these three questions to get some clarity:
1. Have you purchased a new home, or have any outstanding debt? Is anyone dependent on your income, like a spouse, partner, child, parent (maybe they co-signed a loan for you), or sibling?
No: You may not need life insurance.
Yes: Keep reading.
2. Do you want to protect a dependent for a set number of years — for example, until a young child is an independent adult, or until your mortgage is paid off? Or, do you want to cover one-time expenses like college tuition or funeral costs?
Yes: All you may need is term life insurance. Term insurance is cost-effective because it’s in place for a set term, such as 10 or 20 years, not forever.
3. Are you okay with your annual insurance premium becoming more expensive every few years?
No: Of course you’re not! Get a term life insurance policy through Ladder and your premiums will never change over the course of the term period.
If life insurance feels like a good fit for your financial plan, check out what SoFi Protect has to offer. As your life changes, you can always increase or decrease your coverage to suit your needs.
