I feel the need to revisit the topic of inflation as is has been all over the news stations this past week. Inflation is simply the value of our dollar is less than what it was previously because the cost of some goods have increased. We have seen the cost of gas increase $1 a gallon in the last 4 months. The cost of lumber has increased 30% in many cases. Real estate prices are skyrocketing. Some medications are at all-time highs. Inflation is basically a tax on everyone, but affects the poor and middle class more than the wealthy. For those that are on a fixed income, inflation is dangerous. As of today, we haven’t seen a response from the Biden administration on how they are going to fight this. The fact is, they are responsible for much of it as printing money causes inflation. There is more money than goods which cause the cost of goods to increase. That is 8th grade economics. The solution for those of us on the street is complicated. Many will need to cut spending. We made need to travel less, eat out less, reduce our grocery spending. The unfortunate issue is that some people cannot cut anything else from their budget. If you are an investor, it is imperative you speak with an advisor who is knowledgeable on the topic of hedging against inflation. I don’t have a positive outlook on a quick fix to our current inflationary situation. On an individual basis, if you would like to discuss your current financial plan and it’s exposure to inflation, I would be happy to help you. God Bless and please pray for our elected officials .
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