What's Your Financial Blind Spot?

Author

Savvly Inc.
April 21, 2025 • Reading Time: 8 minutes

As we conclude the outstanding 2025 March Madness tournament, basketball fans have witnessed dramatic comebacks, shocking upsets, and nail-biting finishes. The tournament action has featured everything from Texas Tech's incredible 16-point comeback against Arkansas to Cooper Flagg's 30-point performance leading Duke over Arizona, not to mention Houston’s historic comeback in the Final Four.

Just like in basketball, where players must constantly scan the court for open teammates, defensive traps, and scoring opportunities, managing your finances requires awareness of potential blind spots. Even the most careful planners can miss critical factors that impact their long-term financial security.

No matter how well you think you're managing your money, blind spots—from hidden fees to longevity risk—can leave you vulnerable in retirement. Let's look at some key financial developments that might be flying under your radar.

NCAA Basketball via Giphy

Fed Holds Steady on Interest Rates Amid Economic Uncertainty

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The Federal Reserve has kept interest rates unchanged at 4.5% for a second consecutive meeting. According to J.P. Morgan's March analysis, the Fed lowered its growth forecast to 1.7% from 2.1% while raising its core inflation projections to 2.8% from 2.5%.

Fed Chairman Jerome Powell highlighted that while the economy is progressing at a steady pace with solid labor market conditions, uncertainty has increased—partly due to recent policy changes. The economic impact of tariffs is creating additional complexity in the inflation outlook, with Powell noting that tariffs likely drove a "good part" of the Fed's elevated inflation forecast.

For retirement investors, this "wait-and-see" approach from the Fed underscores the importance of reviewing your investment portfolios to ensure they provide diversified sources of income aligned with your long-term financial goals—especially in an environment where economic projections are being revised.

No, People Aren't Financing Burritos (But They Could)

The recent DoorDash-Klarna partnership sparked social media outrage over what many saw as a troubling sign of economic distress—the ability to finance takeout food through "buy now, pay later" services.

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However, as Modern Retail reports, DoorDash executives clarified that the partnership wasn't designed for small food orders, but rather for the 25% of customers who order from non-restaurant retailers on the platform. These purchases might include electronics like AirPods, flowers, or other higher-ticket items.

The viral reaction demonstrates growing concerns about consumer debt levels, which have reached $18 trillion according to the Federal Reserve Bank of New York. NBC News notes that credit card balances now comprise a record $1.2 trillion of that sum—a potential blind spot for consumers who may not realize how quickly high-interest debt can accumulate.

The Good & Bad News of the Week

Good: In a rare moment of bipartisan alignment, politicians across the spectrum are rallying behind efforts to cap credit card interest rates. Yahoo Finance reports that Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna have introduced legislation to limit credit card APRs at 10%, following similar proposals from Senators Bernie Sanders and Josh Hawley. With average APRs around 21.5% (up from 14.7% in 2020), and approximately half of all credit card accounts carrying balances from month to month, this initiative could provide meaningful relief to millions of Americans—including many retirement savers who might otherwise divert funds from retirement accounts to service high-interest debt.

Bad: Inflation came in hotter than expected in February, with the core personal consumption expenditures price index rising 0.4%—the biggest monthly gain since January 2024. According to CNBC, this puts the 12-month inflation rate at 2.8%, above the anticipated 2.7%. While consumer spending increased 0.4%, slightly below forecasts, personal income jumped 0.8%—double what economists predicted. These figures suggest inflation remains stubborn, potentially delaying interest rate cuts and putting pressure on household budgets already stretched by higher prices.

Savvly Blog

Curious about when you will retire? Have you just filed your taxes? Read our latest blog to learn why it's essential to strike a balance between the various retirement vehicles and how they may impact your tax contributions, both short and long-term. 

Before We Go

Just as basketball players need to be aware of their blind spots on the court, investors need to watch for financial blind spots that could impact their retirement. 

Don't let hidden fees, inflation risks, or market volatility catch you off guard. Take time to review your retirement strategy regularly and ensure you're not missing any open opportunities.

NCAA Basketball via Giphy

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Over and out,

Team Savvly