Today’s Prep:
Everywhere you turn there’s a headline about inflation but what do you need to know about what’s going on? Eric weighs in on the recent numbers and what you can do about it.
Equipping Points:
The CPI numbers came out recently showing the increased prices and inflation. Inflation hits retirees a lot harder than people that are working. When you’re working, you’re getting some promotions, raises, cost of living increases. When you’re retired you’re typically living on a fixed income though. To find out if you are ready to face inflation, Eric has a white paper called, Inflation in Your Retirement: Are You Prepared for Rising Costs? outlining the details.
Looking at the recent numbers from March, gas has gone up 48 percent! How did we get here? There are a number of factors that led to this going up even before everything happening with Russia. Fuel prices are affecting everything as it impacts transportation and therefore the price of goods.
Even though there is all this inflation, people are still spending the money. Because the government has infused so much money into the system, people have the money to spend. Right now, many companies are still doing well from an earnings standpoint if they have the raw materials. Without the supply, they aren’t able to make the sales.
For inflation, you have to have growth on your dollars, and the place to do that is in the stock market. But if the market is a little rocky, you need to be able to pull your dollars from safer places. Worried you’ll run out of money? For Eric’s clients, they have safe accounts that are linked to the upside of the market.
Listen to the entire episode to hear more about today’s inflation or skip ahead using the timestamps below.
0:46 – What is happening with inflation?
3:00 – Gas is at the top of the list.
5:32 – Used cars are up 36 percent.
6:46 – What is happening with the market?
7:59 – How do you combat inflation?
Today’s Takeaway:
“Inflation hits retirees a lot harder than people that are working. When you’re working you’re getting some promotions, raises, cost of living increases, but when you’re retired you’re typically living on a fixed income.”
-Eric Peterson
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Who Really Needs a Financial Advisor?
Ever wondered who truly needs a financial advisor, and who might be fine doing it alone? Eric looks at the different ways people approach retirement planning and how professional guidance can fit alongside a hands-on investing style.
4 Financial Commandments for Retirement
In this episode, Eric shares a few simple rules that could change how you think about retirement and investing.
Retirement Truth Bombs: Your Biggest Financial Blind Spots
Some long-held retirement assumptions deserve a closer look. Eric drops a few “truth bombs” and explains why one of an advisor’s most important jobs has less to do with picking investments and more to do with helping people avoid emotional decisions.
Mailbag: Hiring an Advisor, Market Crashes & Tax-Smart Giving
In this mailbag episode, Eric addresses whether do-it-yourself investors need professional guidance, how to respond to predictions of a market crash, and when a donor-advised fund may make sense.
Retirement Lessons from Betty White
Betty White may never have officially retired, but her humor and outlook offer several valuable lessons for anyone planning the next stage of life.
Laid Off Near Retirement? What to Do Next
A layoff close to retirement can feel like a financial emergency, but it may not be as damaging as it first appears. Eric explains why layoffs are happening and walks through the key financial decisions that follow. He also shares a practical checklist for evaluating whether returning to work is necessary, or whether retirement may already be possible.
Mailbag: HELOCs, Trusts, and Family Money
In this mailbag episode, Eric answers listener questions about borrowing after retirement, avoiding unnecessary taxes on large IRA withdrawals, simplifying an estate, and setting healthy financial boundaries with loved ones.
Easy Ways to Ruin Retirement
Retirement can be exciting, but it can also come with new challenges. In this episode, Eric discusses some of the most common ways people can accidentally ruin retirement.
The National Park Guide to Retirement Planning
Whether you’re visiting one of the 63 national parks this summer or just hitting a local trail, a lot of the best practices for a great hike apply just as well to your retirement plan. Today, Eric “walks” through a few.
Mailbag: Military Pension Mistakes & Retirement Decision Paralysis
What happens if you make a retirement decision you can’t undo? And how do you know when you’ve done enough research before making an important financial move? In this mailbag episode, Eric answers two listener questions—one from a military retiree looking to protect his spouse after declining a survivor pension benefit, and another from a listener who struggles with overthinking every financial decision.