INFLATION That's the huge buzzword going around every news channel in America. But what... exactly... is inflation? And how does it affect you personally?
According the Merriam Webster, inflation means: a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services. https://www.merriam-webster.com/dictionary/inflation
So this is normal. Prices of goods and services go up over time. But now, it has an attitude. The current inflation rate is at 8.5% which is twice as much as this time last year. https://ycharts.com/indicators/us_inflation_rate
What does this mean in English? This would mean you would need an 8.5% raise just to live the same lifestyle as last year.
The last time we saw inflation this high? Early 1980's.
What does this mean for your savings? It means you can purchase 8.5% less goods and services than you could the year before.
Whether the price increase is affecting you at the gas pump, grocery store, or just everyday good and services; inflation is having a big impact on your budget.
Regardless of where we are in the economic cycle, inflation will always have an impact on your savings and retirement strategy. If you'd like to discuss your current strategy in more depth; than I'd love to hear from you.