Inflation May Finally Be Slowing Down!
Inflation has been a hot-button issue in finance and politics lately. You may have noticed changes in inflation yourself if you went to buy something and it was much more expensive than you expected. Eggs are a great example of this.[1] In 2022 the price of eggs went up by 59.9% due to an outbreak of avian influenza. Another factor was the pandemic, which caused disruptions to supply chains across the globe, causing inflation and increasing prices.[2] A few other reasons include shortages in labor, high consumer demand, and the war in Ukraine causing specific oil supply changes.[3] All […]
Struggling to Save? You Might Not Be Alone
The current rate of monthly savings across America is currently at 4.6%. This means that most Americans are saving about 4.6% of their monthly income. This number is unusual as the average amount is almost double that number at 8%. Also, in June, this number dipped to a 15-year low of 2.7%.[1] Economists are noting these numbers because it means that Americans are likely having difficulty saving in the current economic conditions.[2] While most people saved more money than they would have normally during the pandemic, there are some concerns that the extra money people had saved will now […]
Current Market Risks and Your Retirement
Our current economic situation is complex and, in some ways, unprecedented. Because of the pandemic, we have seen massive changes in how the market behaves, and we are having to readjust how we approach retirement planning. Market Changes Due to The Pandemic Market Changes Due to The Pandemic : Government Payouts One of the major market changes due to the pandemic was the government directly stepping in to help with the economic downturn. The issue with this is that federal payouts can increase inflation, and when that is coupled with the constant creep of normal inflation, the situation can […]
2 Ways the 2022 Economic Woes Affected Your Retirement Accounts
The 2022 economic climate has been bumpy for most and, in some cases, even bumpier for retirees. Americans and the world at large dealt with the economic ramifications of the Russia-Ukraine war, post-pandemic industrial effects, and rising inflation and interest rates. As the year ends, it’s important to understand how these economic factors may have affected your finances as a retiree. Economic Factors That Might Have Affected Your Retirement Finances: Economic Factor #1: Inflation Between 1991 and 2021, annual inflation averaged 2.5%, close to the Federal Reserve’s desired 2% target, which many believe to indicate a healthy economy.[1] However, […]
3 Factors to Know for Rising Interest Rate Conditions
The 2022 economy has broken multiple records, first, with the highest inflation rate in 40 years, and now, the highest federal reserve interest rates since 2008.[1] In efforts to curb raging inflation, the US Federal Reserve has raised interest rates six times in 2022, reaching a target of 3.75% in November.[2] This rise in the cost of borrowing not only affects inflation but trickles into the decisions you make before and in retirement. Understand how this change affects you as a retiree: Dips in Investment Accounts Borrowing costs and stock market prices move in opposite directions.[3] With the […]
Is Your IRA at Risk in This Market?
During bear markets, we must ask different questions about our money and our assets. It is no longer about which stocks will double over the next twelve months. Instead, it will likely be about how to preserve your portfolio value by investing in stable equities with a consistent yield or profitability to mitigate the risk of steep declines. Regardless, market downturns happen, and if you have an IRA, you might expect to rely on its distributions for income. However, taking distributions means you could risk cutting the lifespan of your portfolio if you withdraw during a market pullback. This […]
Inflation Presents Unique Risks – Know How You’ll Respond
If your weekly grocery bill is noticeably higher or you can’t believe how expensive gas is, you’re not alone. Inflation is at 40-year highs,[1] and a recent poll found that 52% of Americans said the most important issue facing the country is inflation.[2] It’s significant that so many Americans recognized inflation as a major threat considering how unpredictable that market has been. Inflation presents unique risks, so it’s important to know how you’ll respond to them. The Double Threat of Market Volatility and Inflation Let’s not beat around the bush - sometimes, you’re better safe than sorry. With recent […]
You Can’t Stop Inflation, But You Can Prepare
Did you ever hear your parents or grandparents talk about how much less everything used to cost? They weren’t exaggerating – in 1960, a gallon of conventional whole milk was 31 cents, and today it’s $3.77 on average.[1] A few dollars might not seem like much, but that’s a 1,116% increase. You’ve likely noticed higher prices recently, even if they aren’t 1,116% higher. Unfortunately, you can’t stop inflation. But, you can prepare by working to protect your money from inflation. How Much is Inflation Costing You? In March alone, U.S. gas prices rose by more than 18%. Year-over-year, the […]
Why We Could See More Inflation and Market Volatility
As we saw during the COVID-19 pandemic, what happens somewhere halfway around the world can have a major impact on us. Now, the global economy faces new threats as a result of Russia’s invasion of Ukraine, including spiking energy prices, inflation, and a volatile market. Know how you could be affected and what strategies you can pursue to help protect your savings. Are You Protected from Market Corrections? We’ve seen market volatility recently and could see more depending on what happens in Ukraine and what the Federal Reserve does. Oil prices are surging and could continue to rise as […]
Why We Could See More Inflation and Market Volatility
As we saw during the COVID-19 pandemic, what happens somewhere halfway around the world can have a major impact on us. Now, the global economy faces new threats as a result of Russia’s invasion of Ukraine, including spiking energy prices, inflation, and a volatile market. Know how you could be affected and what strategies you can pursue to help protect your savings. Are You Protected from Market Corrections? We’ve seen market volatility recently and could see more depending on what happens in Ukraine and what the Federal Reserve does. Oil prices are surging and could continue to rise as […]
