As prices continue to rise, investors are experiencing the highest inflation rates in decades. In turn, investors will likely have another challenge to deal with soon as the Fed tries to stop prices from continued soaring: interest rate hikes. To learn more about how investors can tackle this double-edged sword, Winnipeg Free Press spoke with Paul de Sousa, senior investment advisor at Sightline Wealth Management, for insight
“Overall, inflation and rising rates at the same time are like a tax on wealth,” de Sousa tells the publication. This causes investors to not only pay more for goods and services but also potentially their debts as well. “So, it’s a double-whammy,” he explains.
Fortunately, there is at least one benefit of this type of environment. According to de Sousa, rising interest rates will eventually lead to higher payments from bonds and GICs. However, before this payoff, he says investors should re-evaluate their investments, debt repayment, spending and saving. “In particular, those close to retirement or retired face the most risks, and so it’s really worth their while to revisit those retirement projections sooner than later,” says de Sousa.
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Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
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