With everything going on in the news these days, it can be hard to keep up. But one thing that has been on everyone’s mind is how these world issues could affect their personal finances.
So, let’s take a quick look at each one and discuss what you should consider when it comes to your money.
As we watch the news unfold, it puts things into perspective for all of us. We’re seeing firsthand how families are struggling with basic needs and human rights issues. Our thoughts continue to be with those who are being displaced and going through this life-changing crisis.
When it comes to the financial world, uncertainty breeds market volatility, and right now the geopolitical situation is very unclear. Historically, conflicts of this nature have only a short-term impact on the stock market, but it is impossible to predict how this will play out. It is important to remember that this situation is impacting the markets, but it does not change your long-term goals. Making short-term decisions regarding long-term goals is never a winning strategy.
MY RECOMMENDATION: Stay the course. If you have questions about your accounts, contact your trusted advisor. That’s what they’re for!
This is a doozy. Inflation is higher than it has been in nearly 40 years. (Many current investors were not even alive the last time we had high inflation!) Last year, it seemed that inflation was only due to short-term supply issues related to Covid. Now there is a spike in energy costs due to the Russia-Ukraine conflict, and inflation is proving persistent.
It may seem counter-intuitive to invest more money right now but keeping too much money in a savings account is particularly harmful in periods of high inflation. (CLICK HERE for my blog about real rate of return.)
MY RECOMMENDATION: Talk to your financial advisor about investments that are designed to keep up with inflation, like Treasury-Inflation-Protected Securities (TIPS).
The Fed has planned aggressive interest rate increases in 2022, and the first of those is scheduled to take place this month. Whether or not the geopolitical situation changes this plan remains to be seen.
It can be frustrating when something out of your control like fluctuating interest rates impacts your finances and can make planning difficult. But there are a couple of moves you can make that will help you.
I realize that watching the news might make you feel a little out of control. Remember that it’s okay to tune out every once in a while and it’s REALLY okay to ask for help and guidance. I love hearing from my clients and working on solutions that let them sleep a little better at night.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.