The Federal Reserve, the central bank of the United States, just announced an additional 0.25% increase to the interest rate. This move has significant implications for investors, who now have an opportunity to make their money work smarter for them.

So, what exactly does it mean when the Federal Reserve raises interest rates? Put simply, the Fed sets interest rates as a way to control the economy. When rates are low, borrowing becomes cheaper and people tend to spend more money, which can stimulate economic growth. When rates are high, borrowing becomes more expensive and people tend to save more money, which can slow down economic growth.

With the recent rate hike, borrowing has become more expensive, which means that the interest rates on loans and credit cards will also increase. However, the flip side of this is that investors can now earn higher returns on their investments. Here's how investing can help:

1. Take advantage of higher yields: When interest rates go up, fixed-income securities like bonds and CDs tend to offer higher yields. This means that investors can earn more money on their investments without taking on additional risk. By investing in fixed-income securities, investors can generate a steady stream of income while also protecting their principal. Learn more about this topic here.
2. Diversify your portfolio: Investing in a variety of different assets can help reduce risk and increase returns over time. With interest rates on the rise, investors may want to consider diversifying their portfolios by adding fixed-income securities to the mix.
3. Capitalize on market volatility: When interest rates change, it can cause market volatility. However, savvy investors can use this volatility to their advantage by buying stocks or other assets at a lower price and selling them when the market rebounds.
4. Plan for retirement: With interest rates on the rise, it's more important than ever to plan for retirement. By investing in a variety of assets, including fixed-income securities and stocks, investors can build a diversified portfolio that will generate income throughout their retirement years.

Onyx Private has many ways to protect yourself from the high-interest rates by offering different kinds of safe investment accounts, including a Cash Sweep Account and Treasury Bills, with rates currently yielding over 5%. Treasury Bills are backed by the U.S. Government and are both state and city tax-free. Onyx also offers personalized Robo-Advisory so you can also have a stocks and bonds portfolio.

In conclusion, the recent interest rate hike by the Federal Reserve presents both opportunities and challenges for investors. By understanding how interest rates affect the economy and investing in a variety of different assets, investors can take advantage of higher yields, diversify their portfolios, capitalize on market volatility, and plan for retirement. So, if you're looking to make your money work harder for you, now is the time to start investing.