How to Rebalance Your Portfolio on Fed Day (Don't Try to Time the 8-Second Market!)
In this solo presentation, Mike Milligan explains that a Federal Reserve rate hike simultaneously harms borrowers and benefits savers. He details how higher rates increase costs for variable‑rate debt such as home‑equity lines, variable‑rate credit cards, and adjustable‑rate mortgages, resulting in cash flowing out of a household. Conversely, he shows that interest‑rate‑sensitive assets—money‑market accounts, CD ladders, fixed annuities, multi‑year guaranteed annuities, single‑premium income annuities, and fixed indexed annuities—receive higher payouts and stronger crediting when rates rise, bringing cash into the household. Because most retirees hold both types of positions, a Fed announcement is not a one‑directional shock but a natural rebalancing moment for their overall plan. Milligan frames Fed Day as an opportunity to assess and adjust the mix of debt and interest‑earning assets rather than trying to time short‑term market moves.
