ORLANDO, Fla. – The veteran CEO of Orlando-based Strong Point Financial said the key questions consumers need to ask themselves to improve their savings status in 2024 comes down to this: “What does it cost to be you and where can you cut back?”
Chance Robinson told News 6 the recent December spike in the consumer price income (CPI) suggests the anticipated Fed rate cuts will probably be delayed, and consumers need to adjust now.
“These things are temporary, you know, rates are going to go up and down, markets will go up and down,” Robinson said. “We have to take it from a longer time horizon.”
Make Ends Meet met with Robinson in his Orlando office last week where he helps investors prepare savings for college to retirement.
He said the biggest misconception people have is that you have to “start with a lot” to establish savings or an investment.
“It’s not about starting with a lot, Robinson said. “It’s about the ability to let compounding interest work in your favor.”
Robinson’s consumer strategy includes: Track your spending, start a savings plan and avoid borrowing money with double digit interest credit cards.
The Federal Reserve Bank of New York reports credit card debt hit $1.079 trillion in the third quarter of 2023, while total household debt hit a staggering $17.29 trillion.
“The only thing you can do with borrowed money is have more compounding interest work against you,” Robinson told News 6. “We have to put that idea into reverse right now.”
Robinson suggests a steady investment option like an SP 500 index fund will get you on a steady savings path.
“When you look at the market at a 10-year period or 20-year period, we’re fine,” he said. “Everybody benchmarks themselves on how the SP performs so if the SP performance is the bar, invest in the bar.”
Several institutions offer interest between 4.75% and 5.25% with no set minimum to start.
Including: Synchrony, UFB Direct, and Marcus by Goldman Sachs.
Western Alliance Bank is offering 5.32% with a minimum of one $1 dollar deposit.
For more information go to spfadvisors.com or accounts.bestrates.com.
If you have an investment or consumer issue, email makeendsmeet@wkmg.com or text the words “make ends meet” along with your issue and contact information to 407-676-7428.
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