2016 Financial Questions Answered

By Cathy DeWitt Dunn

Fox 4 News anchor, Jenny Anchondo interviews financial expert, Cathy DeWitt Dunn to help Fox viewers get their finances ready for 2016. Viewers were given the opportunity to have their questions answered on-air by Cathy.

Jenny and Cathy discuss topics such as banks, FDIC insurance, real estate investing, mortgage rate projections, annuities, and more.

Cathy also gives two hot financial tips for 2016. Find out what they are and how they can help you and your finances!

2016 Financial Questions Answered – Interview Transcript

Jenny Anchondo: All right, everybody. We asked your financial questions and everybody from teenager viewers to my dad posted their end of the year financial questions for Cathy DeWitt Dunn, financial expert. It was awesome to see so many people responding and everything. Welcome, Cathy.

Cathy DeWitt Dunn: Good morning.

Jenny: Okay, so our first topic is banks and one viewer, Edie Brunson, wants to know what may be the best to use these days: online or brick and mortar?

Cathy: Great question. It’s a personal preference. If you’re willing to give up service and you’re just looking for a higher yield, online banking is awesome but just remember, if you have an online banking account, you’re going to pay higher ATM fees and you’re probably not really going to have any service later down the road so you have to pick and choose service or rates.

Jenny: Okay, so you can’t give us a flat answer on that one. It’s just do your own thing. Figure it out. Investigate, right?

Cathy: Absolutely. Make sure they’re FDIC insured as well, especially online these days.

Jenny: Okay, so our next topic is from viewer Russ McDaniel. He wants any advice on real estate investments and projections on mortgage rates. And everyone is just hanging here in the balance, wanting to know about that same thing, especially if you’re in the metroplex.

Cathy: Exactly. Here’s my little ball. Rates are probably going to be going up. Right now, a 30-year fix is around 4% and the expectations are that rates are going to go up but real estate really, long term, can provide some good income and retirees really enjoy that. But you have to also take a look at your expenses and you need to take a look at the whole plan on the real estate horizon and make sure that your rates are in line with what you can afford and look at what the income is going to be later down the road.

Jenny: So am I interpreting it correctly when I hear you say, don’t go out and do this real estate investment if you’re barely making your own house payment or if you’re not in a home on your own?

Cathy: Exactly, because the big surprise is going to be expenses and things later down the road, so yeah, exactly.

Jenny: Okay, so Tim and Rick are looking for high yield, low risk investments. Aren’t we all? I’m with you, Tim and Rick. So what should they consider when they’re looking for some options? Let’s say, “Okay, I’ve got this little bit of money here. I’m looking to invest. What should I look at?”

Cathy: That’s a great question, and I love it. I work a lot with my clients on fixed index annuities because your principle’s guaranteed and the yields on the fixed index annuities can be very significant and much more than CDs so you need to really work with a financial professional that’s licensed with all the different companies so they can get you the best deal. The annuity world has really changed and their contracts have become very consumer friendly so make sure you take a look at that option.

Jenny: So is that similar to going to an insurance broker that is with a bunch of different agencies?

Cathy: That or financial professional. A lot of people have these products that are available to them right now, even some brokerage houses, but you really want to work with somebody that has the ability to look at all the different companies.

Jenny: Right, that’s what I mean. In that, they’d be able to look at a lot of insurance companies. This is someone that looks at a lot of different annuities or options.

Cathy: Right, exactly. And there are so many great rates right now in the market.

Jenny: Okay, so before we go, I understand that you have two top tips for 2016 that are just going to make us succeed.

Cathy: Absolutely. Well, there’s been a lot of recent changes with social security so if you’re over the age of 66 or you’re going to be 66 by April of 2016, you might want to take a look at filing for your social security benefits. Things have also changed with regard to file and suspend. People thought that they were going to get a bump and everything like that so take a look at what you’re going to do with your social security benefits. You might want to meet with your financial professional and take a look at that.

Also, 2016, dream. Think about what you want to do with your money. Put some money away whether it’s for a vacation or retirement savings or paying off your student loan. Right now is a brilliant time to think about where you’re going to put that money and put it aside.

Jenny: Okay, dream, set a goal. I like it. Cathy DeWitt Dunn, thank you so much.

Cathy: Thank you.

Disclosure: For informational and educational purposes only. The information contained herein may contain information that is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor.

Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company, not an outside entity. Investors are cautioned to carefully review an indexed annuity for its features, costs, risks, and how the variables are calculated. A fixed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed or indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index.

Not associated with or endorsed by the Social Security Administration or any other government agency.