LOUISVILLE, Ky., Dec. 15, 2021 /PRNewswire/ — Increased government spending, stalling supply chains, continued labor shortages, and low interest rates, have coined this term for a new American reality "Inflation Nation." According to new research (U.S. Bureau of Labor Statistics, 2021), the Consumer Price Index (CPI), a measure of inflation on consumer goods, increased by 6.8%. The last time the CPI posted that high of an increase was in June of 1982. Even when backing out food and energy costs, the index shows a 4.9% increase from the prior year. The energy index rose 33% over the last year, gasoline alone was above 58%, and the food index posted a 6.1% increase. Today’s consumers are seeing the impact of the rising cost of goods and services in every aspect of their lives. Given this, retirees are finding it necessary to utilize strategic financial tools designed to tackle this issue.
Let us take a high-level look at the economy. Today, global markets demonstrate volatility as markets like Europe, an economy heavily dependent on tourism, continues to open and close its borders with each new variant discovered. Asian countries, rooted in manufacturing, find shortages in resources while supply chain gridlocks hinder their ability to meet consumer demands. Here in the U.S., the Treasury continues to suppress interest rates while banks follow suit. The current market environment leaves many investors in a quandary.
Some might say inflation brings a boost to American wages; however, many believe it is necessary just to maintain current lifestyles. For retirees, inflation places pressure to increase risk in their portfolios to keep pace with the inflationary boom. The question many are asking is, "What can we do to protect our hard-earned dollars from the effects of rising costs?"
There are various financial strategies designed to overcome this challenge many now face. Initially, some may need to continue to work or even return to the workplace. Increasing personal savings, reducing debts, and most importantly taking a comprehensive approach to financial planning centered around risk management and investment diversification, are options available to outpace inflation.
True diversification includes money that is low-risk, money that is liquid, and money designated for growth. Collaborating with a professional who focuses on holistic financial planning, consumers will not only survive, but thrive in what we call today’s "Inflation Nation."
About Stephen Baldwin
Stephen Baldwin was born and raised in the Kentuckiana area. He married his wife, Annette, in 1993 and together they have two daughters, Adeline and Eleanor. Stephen and his family are deeply involved in the community and are members of Southeast Christian Church; the Baldwins are proud to call this area home.
Stephen first entered the financial services industry as a college student in 1993 and is now the President of Capital Insurance Group, LLC. His goal for Capital Insurance Group is to provide a reliable commitment of services, support, and professional integrity to all his clients.
Stephen and his team believe that building on client relationships and being involved in their lives for years to come is the greatest reward. With an overall objective to help clients eliminate much of the confusion in planning their financial future, Stephen strives to be as simple as possible with honesty and a desire to meet each client’s individual and unique goals.
Advisory services offered through Kinetic Investment Management, an SEC Registered Investment Adviser.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Although forward-looking statements contained in this communication are based upon what the author believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
SOURCE Capital Insurance Group