The Fed just slashed rates — experts reveal the No.1 place to keep your money right now

Interest Rate Changes - The Federal Reserve has cut interest rates for the second time in 2023, lowering the federal funds rate to a range of 3.75%-4% [1][14] - Fed Chair Jerome Powell has expressed uncertainty about the possibility of another rate cut in December [1][15] Impact on Borrowers and Savers - The rate cut is beneficial for borrowers, potentially leading to lower loan and mortgage rates [2] - For savers, the lower rates signify a turning point, making it harder to earn strong returns from savings accounts and fixed-income products [2] Investment Strategies - Experts recommend maintaining emergency funds and short-term savings in safe, low-risk places [3] - Money not needed immediately could be invested in higher-return options like stocks, which historically tend to rise when interest rates fall [4][5] - Since the September rate cut, stock prices have continued to climb [7] Investment Vehicles - Exchange-traded funds (ETFs) are suggested as a way to invest in a broad range of companies, spreading risk while capturing market growth [8][17] - Acorns, a micro-investing app, allows users to invest spare change into ETFs based on their risk level [9][17] Real Estate Investment - Real estate is highlighted as an alternative investment path, with Homeshares offering accredited investors exposure to a portfolio of owner-occupied homes through its US Home Equity Fund [11][17] - The fund targets homes with strong equity and aims for risk-adjusted target returns of 14% to 17% [13][17] - A balanced investment portfolio is suggested, comprising 50% stocks, 30% bonds, and 20% alternative assets like real estate [12][17]