Well, inflation has certainly arrived on many fronts!
The big questions are:
1) How long will it last?
2) How bad will it get?
3) How will the Federal Reserve respond?
4) How will the financial markets respond?
If we are honest, no one REALLY knows the answers to these questions…even the Fed. But what we can do is to try to help you make sense of what is happening, some of the factors involved, what to look for and how to hedge/protect yourself as best as possible. As you will learn, in the short-term, there are not a lot of good answers except to manage your expenses as best as you can, be creative and try to stay flexible. Longer-term, there are things to consider both in terms of your portfolio and your overall financial life situation. This edition of our newsletter is devoted to helping you navigate the growing inflation, on your own terms. It’s not a one-sizefits all experience. Depending on where you are in your lifecycle, the answers for mitigating inflation may be different. It’s important to keep in mind that without knowing how long this will continue, we can plan proactively without completely blowing up your financial plan. We have always known that inflation is a powerful part of the planning process and have planned accordingly by using a 3% long-term inflation rate rather than today’s (or last year’s) inflation rate for decades to come. Our job is to be conservative in our planning projections, so we are ready! Be sure to check out Kathy Frakes’s last (yes, see the OWM Team Updates section) Financial Planning Column where she talks about how we navigate inflation from a planning perspective.
Read more here: 2022 Q2 Newsletter FINAL