Latest news with #RobConzo
Yahoo
3 days ago
- Business
- Yahoo
How the Fed's July rate cut decision impacts American wallets
Federal Reserve officials are expressing mixed sentiment about whether to cut interest rates or hold them steady in the July FOMC meeting. Wealth Alliance CEO Rob Conzo joins Mind Your Money with Brad Smith to discuss how either outcome would impact Americans' everyday finances. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Well, Federal Reserve officials are split on whether an interest rate cut in July is on the table, depending on whether the FOMC holds rates steady or reduces the benchmark rate. What does that outcome mean for your everyday finances? Here to explain and discuss further, we've got Rob Conzo, who is the Wealth Alliance CEO. Rob, good to have you here with us. How does the Fed's benchmark rate affect people's personal finances? Great to be with you, Brad. Um, it's a very misunderstood rate. It's the rate, the rate that banks charge each other to borrow money, but how does that affect you personally? Well, first thing it affects you either way. Number one on the expense side, meaning borrowing. So we all know that, right? We have mortgages, and credit cards, and auto loans, and student loans, and, and small business loans. So when the Fed sets a rate, right now it's between four and a quarter and four and a half, well, then all the banks look at that rate and decide where they're going to charge you for the debt side of it, your expense. And let's not forget half of the American economy is small business. So when they have to pay more for lines of credit loans, well, it hurts them, they hire less, and it's a problem for the economy. That's why everybody wants the Fed to lower rates. So Rob, let's get specific. How are mortgage rates impacted by the Fed's next move? And what does and does a cut mean that we could see lower mortgage rates as well? Yeah. So the longer you go out with lending, the longer other factors are involved. I'll give you an example. Let's talk about money markets. That's money you're earning. Well, that's every single day, and all it matters is what the Fed's going to charge, and what the bank wants to make. And there's a rate, a mortgage, money expense, you're spending. Well, that's different. Now suddenly the bank goes, alright, let's see what the Fed is going to charge. Four, four and a quarter. Okay. Now, you want to get a mortgage. So the Fed rate is one aspect. Uh, how much of a mortgage is a second. How long are you going out? What's your salary? How the house is valued at. So the longer the debt, the more Fed rates, uh, the more your personal stuff gets involved and muddies the water between just the Fed rate. So the Fed rate is just a little part of it when you're going out longer. You know, while we have you here now, let's go to credit cards. Say, you know, maybe not me, but somebody I know has a lot of debt, debt and, and uh, racked up here. Will a lower benchmark rate from the Fed mean that I have to pay less interest perhaps? Great question. The credit card one is the one that's a little unique in the sense that credit card companies charge upwards of 15, 20, 25% in interest. And you're saying to yourself, well, how could it be so high? And it's so high because credit card companies want to make a lot of money. So at the end of the day, there's so much leeway in the credit card company. You would think if the Fed lowered rates, you would see credit card rates come in as well. That may not be the case. Some credit card companies just hold it steady and it is what it is. I'll tell you, give you another example. Sometimes, forget credit cards, again, when you had a bank savings account, and you're getting very, very little interest rate, but yet the Fed's rates at 4 and a quarter, 450. Why is that the case? The bank has the right to say, look, we're only going to give you 0.2%. Meanwhile, another brokerage account could give you 4% on a money market. So there is business parts of what the interest rate you pay or you receive on top of the Fed rate mandated. What about savings vehicles like CDs, certificates of deposit? How are they impacted depending upon the Fed's decision? So CDs, saving vehicles of all sorts, money markets is a is a standard one. Bank savings accounts, people know. Again, there's two aspects of it. Fed, surely, if the Fed raises rates like they have, well, then you're going to typically get more in bank savings accounts and CDs. And we've seen that, people getting 5% CDs. The Fed starts lowering rates, if they do, and we don't think they're going to be doing that this July, but good chance they could be doing that in September, the Fed starts lowering rates, you'll see those CD rates and savings rates come in. And that's why a lot of financial advisors are saying, hey, you may want to lock in a longer rate now while it's still high before the Fed cuts. And finally, while we have you here, Rob, when the Fed finally cuts interest rates, should you adjust your, yeah. Should you adjust your financial plans, things like your budget or borrowing or, should you just stay the course? Now, um, it's a very good question. And it it depends really. A lot of answers to financial questions are, it depends, unfortunately. But the real answer is when the Fed starts cutting rates, if it's just very, very minimal, a quarter of a point, um, that's not going to make a big difference on things. But as things start to go down further, if they do, well, then you want to start preparing for that now. You want to get your financial plan in order, understand how long your debt is going out. Are they credit cards with really high interest rates? And on the income side, on my income vehicles, bonds, CDs, savings accounts, giving me the interest that I need to make my retirement and financial goals. Rob, thanks so much for taking the time here. We're going to be watching closely as we know that you will be too for when they do start to cut interest rates. Thanks so much. Alright. Thank you.
Yahoo
30-01-2025
- Business
- Yahoo
Wealth Partners Capital Group, HGGC invest in The Wealth Alliance
The Wealth Alliance, a registered investment adviser (RIA) headquartered in New York, has struck an alliance with Wealth Partners Capital Group (WPCG) and HGGC's Aspire Holdings. This collaboration involves a minority equity investment in The Wealth Alliance, aimed at enhancing its operating platform and fuelling growth through mergers and acquisitions. The partnership was finalised in November 2024, with its financial and legal specifics remaining confidential. The management team of The Wealth Alliance, led by co-founders Rob Conzo, CEO, and Eric Diton, president, will retain majority ownership and control over the firm's operations. With over six decades of combined experience in serving clients, Conzo and Diton established The Wealth Alliance in 2019. The firm has an internal team of certified financial planners, public accountants, investment managers, and service professionals. Rob Conzo said: 'WPCG shares our core value – the client always comes first. This partnership will accelerate our growth path and provide greater financial planning solutions in the future.' Headquartered in Melville, New York, and with an office in Boca Raton, Florida, The Wealth Alliance is expected to expand its mergers and acquisitions (M&A) efforts in the Tri-state and Mid-Atlantic regions, along with south Florida. As of 31 December 2024, The Wealth Alliance managed approximately $2bn in assets. WPCG managing partner John Copeland said: 'We are excited to partner with Rob, Eric and the entire WA team. 'Given the firm's client-first approach, fiduciary mindset and deep investment and planning expertise, WA is poised to be a leading wealth management firm serving clients in the Northeast and beyond.' Turkey Hill Management was the investment banker for The Wealth Alliance, while Potomac Law Group and Kirkland & Ellis provided legal counsel to The Wealth Alliance and the investor group, respectively. In 2021, Georgia-based hybrid RIA Merit Financial Group secured investment from WPCG and HGGC-led investors to spur growth. "Wealth Partners Capital Group, HGGC invest in The Wealth Alliance" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
