How do Fed rate cuts affect high-yield savings and CDs?

Banks typically lower deposit rates after a Fed cut, but not all at once. Use the repricing lag to sweep idle cash into a HYSA and consider a short CD ladder before yields fall further.

Is now a good time to refinance my mortgage?

If your current rate is materially higher than today’s market and the breakeven on closing costs is under ~3–4 years, a refi can make sense. Run the numbers before rates move again.

What should retirees change in a withdrawal strategy after a rate cut?

Keep 12–24 months of withdrawals in cash/short bonds, maintain a bond ladder for near-term income, and rebalance. Don’t overhaul the plan based on a single policy move.

Should I extend bond duration now that rates are falling?

Stay disciplined. Use high-quality short and intermediate bonds to match spending horizons. Avoid reaching for yield that adds credit or interest-rate risk you don’t need.

What 401(k) changes do I need to make under SECURE 2.0?

Confirm your catch-up contributions (especially for ages 50+ and 60–63) and Roth catch-up settings under the finalized rules. Your plan provider and advisor can help you implement updates.

After the Fed Cut: What to Change—and What to Leave Alone—in Your Plan

HFF Staff Writer
3 hours ago
4 min read

If you caught the headlines: yes, the Fed trimmed rates in mid-September. That’s the policy news. The real story is what you should (and shouldn’t) tweak—cash buckets, CDs, mortgage timing, bond ladders, and withdrawals—so your plan keeps doing its job. (Board of Governors of the Federal Reserve System, “FOMC Statement,” 17 Sept. 2025) Federal Reserve

What Actually Changed (and why it matters)

On Sept. 17, 2025 the Fed lowered the federal funds rate by 0.25%. One governor even voted for a deeper 0.50% move, underscoring a shift toward easier policy as growth cools. The Fed’s own projections set expectations for further easing if inflation and jobs data cooperate. (Board of Governors, “FOMC Statement,” 17 Sept. 2025; Board of Governors, “Summary of Economic Projections,” 17 Sept. 2025) Federal Reserve+1

Translation for households: borrowing costs tend to drift down; so do yields on savings products—though banks often cut deposit rates more slowly than markets move. That timing gap is your opening. (Fortune, 26 Sept. 2025; WSJ Buy Side, 29 Sept. 2025) Fortune+1

Cash: HYSAs and CDs (use the repricing lag)

Top online HYSAs and CDs are still elevated by historic standards, but they’re already inching down post-cut and could fall further if the Fed eases again. If you’ve been meaning to lock part of your cash bucket, consider a short ladder (e.g., 6–18 months) while rates remain competitive. Keep an operating reserve liquid in a HYSA and segment the rest by time horizon so you’re not forced to break a CD. (Fortune; WSJ Buy Side) Fortune+1

Quick moves:

Sweep idle checking cash to a HYSA (emergency fund stays liquid).
Build/refresh a 3–4-rung CD ladder so something matures every few months.
For near-term goals (<12 months), avoid chasing a tiny APY edge if it adds lock-in risk.

Mortgages and refis: what the latest numbers suggest

The 30-year fixed rate hovered around the mid-6s in September (Freddie Mac’s weekly survey showed ~6.30% on Sept. 25 after a sharp drop earlier in the month). If you’re sitting on a 7%+ rate from 2023–24, a refi scenario is worth running; if you’re already near the mid-6s or better, the savings may be marginal once you factor closing costs. (Freddie Mac PMMS Archive, 25 Sept. 2025) Freddie Mac

Rules of thumb:

Buying soon? Focus on the payment you can afford today; you can always revisit a refi if rates drift lower.
Refinancing? We generally look for ~0.75–1.00 percentage-point improvement and a breakeven under 3–4 years.
ARMs coming due in the next 12–24 months: start shopping early and stress-test your budget.

Bonds and ladders: don’t overreach for yield

Treasury yields eased after the cut (the 10-year note finished Sept. 26 near ~4.2%). That still supports sensible ladders for income and volatility control without stretching into credit risk. If you extended duration earlier this year, check that your mix still matches your spending runway. (Advisor Perspectives/dshort, 26 Sept. 2025) Advisor Perspectives

Practical setup:

Map spending years 1–5 to short, high-quality bonds/T-bills (laddered).
Use intermediate-term, high-quality core bonds for years 5–10.
Keep equities aligned to long-term goals—don’t fund next year’s expenses with stocks.

Retirees: protect your paycheck from your portfolio

Lower short-term rates shouldn’t derail a well-built withdrawal plan. Sequence-of-returns risk matters more than squeezing an extra 0.15% APY. Shore up your cash/short-bond bucket for 1–2 years of withdrawals, rebalance after strong equity runs, and avoid wholesale strategy changes based on a single Fed move. (Board of Governors; Freddie Mac PMMS context) Federal Reserve+1

Taxes and plan housekeeping (bonus if you’re 50+)

With the Fed easing, it’s a good time to revisit Roth conversion windows (especially in down equity markets) and confirm 2025 catch-up strategy under the newly finalized SECURE 2.0 rules—particularly the Roth catch-up for higher earners and the increased catch-up for ages 60–63 beginning after 2025. We’ll tailor this to your plan documents and payroll systems. (IRS; Federal Register) IRS+1

Your 30-Day Action List

Rebuild your cash buckets. HYSA for liquidity; consider a short CD ladder before more cuts. (Fortune; WSJ Buy Side) Fortune+1
Run the mortgage math. If your rate starts with a 7, we’ll model refi scenarios and breakeven. (Freddie Mac PMMS) Freddie Mac
Audit bond duration. Keep income predictable with high-quality ladders; avoid reach-for-yield traps. (dshort yield snapshot) Advisor Perspectives
Refresh withdrawal guardrails. Lock in 12–24 months of spending in cash/short bonds; rebalance as needed. (Board of Governors; PMMS) Federal Reserve+1
Confirm catch-up and Roth settings. Make sure plan updates align with SECURE 2.0’s finalized rules. (IRS; Federal Register) IRS+1

Ready for a personalized rate-cut action plan?

If you want an advisor to translate today’s policy shifts into a concrete, step-by-step plan—cash, debt, taxes, and investments—we’re here to help. Let’s build your Custom Financial Blueprint.

Resources:

Board of Governors of the Federal Reserve System. “Federal Reserve Issues FOMC Statement.” 17 Sept. 2025. Federal Reserve
Board of Governors of the Federal Reserve System. “Summary of Economic Projections, September 17, 2025.” 17 Sept. 2025. PDF. Federal Reserve
Freddie Mac. “Primary Mortgage Market Survey® (PMMS) Archives.” 25 Sept. 2025. Freddie Mac
“Best High-Yield Savings Account Rates: Sept. 26, 2025.” Fortune, 26 Sept. 2025. Fortune
“CD Rates Today, Sept. 29, 2025: Highest APYs Range from 4.25% to 5.00%.” WSJ Buy Side, 29 Sept. 2025. The Wall Street Journal
“Treasury Yields Snapshot: September 26, 2025.” Advisor Perspectives (dshort), 26 Sept. 2025. Advisor Perspectives
Internal Revenue Service. “Treasury, IRS Issue Final Regulations on New Roth Catch-Up Rule and Other SECURE 2.0 Act Provisions.” 15 Sept. 2025. IRS
Federal Register. “Catch-Up Contributions.” 16 Sept. 2025. Federal Register