Latest / Financial Survival Network / Feeling the Pinch: How Inflation Could Shake Up Your Financial Future! - Mindy McIntosh #6021

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Feeling the Pinch: How Inflation Could Shake Up Your Financial Future! - Mindy McIntosh #6021 · Financial Survival Network

• 0:00
  And looking at annual beans. We need to look at both of those,
• 0:03
  and so we see influential factors. Right. Energy prices are somewhat largely to
• 0:10
  blame here for the increase in the headline for inflation. Like I said,
• 0:14
  that gas price increase of about three point eight percent. Airlines we're coming up
• 0:18
  on spring break, right, so a lot more people are traveling. We
• 0:21
  see prices raised about three point six percent, and even just food cost increase
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  on AVERORADEM about chin point two. So we need to see this and I
• 0:29
  think we're going to see that trend continue. You are listening to Carrie let'sa's
• 0:32
  Financial Survival Network where you get valuable information you just can't find anywhere else to
• 0:39
  thrive in today's trying times. You need the Financial Survival Network now more than
• 0:45
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• 0:51
  Financial Survival Network now more than ever, and welcome you are listening to
• 1:00
  and watching the Financial Survival Network. I'm your Earth, Kerrie Loitz. Don't
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  mind the eye, just a minor little thing that takes five days to get
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  rid of and very annoying. Doesn't look great, but hey, it is
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  what it is so well, we got a new guest on that I know
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  you're going to want to hear from. Her name is your name is a
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  Mindy Magadosh and Mindy retirement expert. And we're talking about inflation here. So
• 1:32
  what's the good news on inflation. Well, we'd like to talk a lot
• 1:36
  about the good news on inflation today is you know, consumer prices raised three
• 1:40
  point two percent over last As we look at inflation, it remains elevated,
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  you know, ten year treasures about four point one percent. But I really
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  think it as we take a look at this zero point four percent in presolver
• 1:53
  previous month is not you know, it's not a big pitfall of oh my
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  gosh, we weren't prepared for this. We've been prepared. We always talk
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  about here at the firm, just being prepared and having a plan is key.
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  And I do think that February, with the slightly higher than average the
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  gains, we'll see a little bit of a stick shelter inflation to largely to
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  blame for, you know, just core inflationary readings. And when we take
• 2:17
  a look at economists, this is really what we're seeing here. And I
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  think as we get closer and closer. Both measure you know, economic forecast
• 2:27
  month over month with increases, So we know that data as we see even
• 2:30
  from Bloomberg and such. What does it mean We better be saving though,
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  we better be knowing where our funds are going. How do we have a
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  plan and stick to the core basics? Is really what I think here,
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  Carrie. Yeah, so you think it's going to abate or you think it's
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  going to get worse, Well, I think it possibly could get worse,
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  because really, when we look at these measurements, when we are forecasting this
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  point four percent increase over and over with data the core basis strips more volatility
• 2:57
  and costs of food, we see gas prices toging, and really in February
• 3:01
  we see the climb a little bit point four percent over prior month, and
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  really these point two point three point four we feel like it's not a lot,
• 3:08
  But in the scheme of things, this is monthly, this isn't year
• 3:10
  over year. So we take a look at these monthly changes. Both measurements
• 3:15
  are higher than the economics had really thought. We're expectations and looking at annual
• 3:21
  beans. We need to look at both of those, and so we see
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  influential factors. Right, Energy prices are somewhat largely to blame here for the
• 3:30
  increase in the headline for inflation. Like I said that gas price increase of
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  about three point eight percent. Airlines were coming up on spring break, right,
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  so a lot more people are traveling. We've seen prices raised about three
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  point six percent, and even just food costs increase on averagem about two point
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  two. So we need to see this and I think we're going to see
• 3:49
  that trend continue. All right, So higher inflation, you know, you
• 3:53
  would think with higher interest rates would come you know, lower housing price,
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  and yet that's the opposite. We've really been seeing opposite there. And I
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  think that when we take a look at housing prices out a hole, one
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  nice thing would be is how do we actually see when we see inflation on
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  the rides, we see interest rates changing, we're seeing that housing market fall
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  right as far as how many new home buyers. We're going to see that
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  continue to scale inflection with the market. So when we see these interest rates
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  tire, we're going to see more of a whole pattern there. And I
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  really just think that the market largely expects, you know, some of the
• 4:28
  central bank to begin, you know, cutting rates maybe by June leading time,
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  and so we'll continue to see this. We've seen a flow to even
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  a labor market. So with the labor market continuing to weaken some, it's
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  taking people longer time to find jobs and earlier. We're kind of in the
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  early steps of signed here, so not such major layoffs, but just if
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  you are looking for a new job, it's taking longer to kind of plan
• 4:50
  and forecast one as well. Well, you know, you mentioned travel,
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  and the airlines have been giving huge pay in creases to their pilots forty plus
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  percent, fifty percent, and to their flight attendants and basically all their employees.
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  So there's no place for airline prices to go. Ticket prices, but
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  up right, we really yeah, and we're seeing that, we're seeing it
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  go up. We're seeing a little bit higher demand too in travel these days.
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  So with the higher demand and travel, we are seeing, even the
• 5:23
  firm standpoint of the financial side, more people are traveling now, so they
• 5:27
  call it kind of living their best life. So and we're seeing way too
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  many people are actually spending time on their one or two week vacation, on
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  the time that they put into planning and their travel needs at hotels and what
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  they're going to spend there. So we are openings really firmly talking to folks
• 5:43
  about let's make sure that we're porting in time plan will retire. Well,
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  we call it our focused journey to make sure that we have a budget.
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  Do we know when our expenses are and let's really look at you know,
• 5:53
  if you are looking to travel more. We know that costs are going up,
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  haven't we you know, on the foot of side of things prepared for
• 6:00
  that. We don't want to have more credit card bills down the line,
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  and we need to make sure we're investing in saving it up at our retirement
• 6:05
  plan, making contributions to the four to one case of I rate to save
• 6:10
  for later when you come into that distribution thing, in saving for the future
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  as well. Yeah, and trust me, it's a lot closer than you
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  think. So, but you know, we have this deficit. We're adding
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  a trillion dollars every ninety days to the deficit. Something's got to give here,
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  right, Something's got to give. I think we're going to see a
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  lot of this with tax rates. When we talk a lot about tax dvanagings
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  here and I even say it can go on twofold, right, So the
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  taxes that we're paying today current tax laws are due to sunset the end of
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  twenty twenty five, so we know tax rates are growing up. We also
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  know that we're going to see this influence you know, all classes, right,
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  all classes of citizens that are going to be paying a higher tax rates.
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  So whether it's just on what we're spending budget lies, extra trips,
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  travel, paylans, our food, gasoline, so not only just those,
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  but as we take a look at the CPI, it's also going to pertain
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  to when we're with draw strategy inside of retirement, where's our income coming from,
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  how do we diversify asset classes? And let's make sure that we're really
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  careful of the legislative risks that we are facing here, and you're absolutely right
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  there, Carrie, to make sure that when we're in even with draw our
• 7:23
  contribution strategies, are we being as tax efficient as possible, because I feel
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  we are due to pay heavier taxes in the future and those probably aren't going
• 7:31
  up, so we need a plant accordingly, All right, So market,
• 7:34
  so what do you what are you supposed to do in this inflationary environment?
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  How are you do you you know it's hard enough to make ends meet,
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  how do you up your contributions to your retirement plan? Absolutely? Right?
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  So as we are taking a look at this, you know environment, your
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  dollars and spending as far as you used to. Right, so, we
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  know that things are costing more. Food is costing more, services are costing
• 7:58
  more. So I think that if we can really focus on spending the first
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  hour of every day and just investing into your own future and putting that away
• 8:07
  for your retirement saving, and if I can encourage any of you retire to
• 8:11
  retire and plan to retire in a tax re envelope. So if you have
• 8:15
  raw fool or KA raw forral TREEV options, please contribute there. You'd be
• 8:18
  glad you did. So that when you're in your withdraw strategy, just think
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  of that. If you're in a twenty percent tax bracket and you can save
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  twenty more cents today in a tax re envelope, do so. It can
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  grow an a keeguy tax for you will draw it tax free. And just
• 8:31
  think of things in your expense land or your budget sheet that you might be
• 8:35
  able to cut back in. Maybe you don't need that extra cup of coffee.
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  Maybe that extra trip to go out to dinner tonight could be something that
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  you do a home at dinner tonight. So just some of those things to
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  carve out very small pieces will continue to move that threshold for you to be
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  able to focus on that future. Yeah, I think back the head of
• 8:58
  kel Out gotten a hot world by telling people they should eat cereal for dinner.
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  You know, well, you know, I've seen it happen. We
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  do have three own kids. It's happened a few times. But I think
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  if we plan accordingly, look too right, look at it, look at
• 9:13
  food places, look at what's on sale, plan your week. You can
• 9:16
  plan your meal, plan all out week by week, and shop around the
• 9:20
  exterior on the you know, of the of the shopping center and don't get
• 9:24
  bomb down. Then those extra things in your car. All right, Well,
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  you know he's kind of like Marie Antoinette basically sell it telling the public
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  let them eat cereal. Right, Oh, we don't want to tell them
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  that. We do want to make sure that we're health based and health conscious
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  and being focused there. But I definitely think that you know, hey,
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  you can you can definitely make dinner at home. That cuts down then costs
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  just different items. As you take a look at what goes on sale week
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  over week, try not to waste, you to think of good ways to
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  have leftovers, anything like that. I think that we can all put into
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  a good plan. I know we've sure them done well. I'm a farm
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  girl, born and raised out a farm, so we just kind of know,
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  Hey, how do we get creative with some of these things? And
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  it still can all be pretty tasty. And you can still then say and
• 10:13
  look forward to the future and make sure that we're planning ahead to forecast what
• 10:16
  we see coming. You know, like one thing I found recently, and
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  I'm not the coupon clipper by any stretch. They got to make it as
• 10:26
  easy as possible for me or I can't be bothered. But CVS where you
• 10:31
  used to get this receipt as long as the Dead Sea scroll, Now they
• 10:37
  got an app and you can get all that savings. And if you get
• 10:39
  this extra care cord, I think it costs you twenty bucks. They give
• 10:43
  you ten dollars every month, and then you buy all this other stuff that
• 10:48
  you're going to buy anyway. The key here is not impulse out, but
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  you wind up saving twenty thirty dollars a month on stuff that you're buying anyway,
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  you know, like sometimes I don't know how CVS does it. Sometimes
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  I go there and I'm waiting for them to pay me money. Sure,
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  Hey, you know, I think that they're all looking for ways to make
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  sure you're shopping at CBSS and that some of their competitors. I think we
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  could say that in a bunch of different realms, look at you know,
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  the online shopping shipped and admire and all of this even to us. You
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  know, if you take a look at uh uh, middle aged families raising
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  children, you definitely spend more when you take the children with you, or
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  even if you go on an empty stomach to the grocery store, then you
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  will look. You can actually take a look at maybe items are on sale,
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  what are they looking at for the week. So I think if we're
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  strategic in that and even seg that out, we help a lot of our
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  clients really look at what should we be spending weekly and they trying to stay
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  within that realm budget wise, So we know this is what we're saving,
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  this is our fun money, and this is actually what we're going to use
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  and suber goods. It's really helped, you know, really significantly move that
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  needle to move the dial for them. It's really not a whole lot different
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  than making sure we're staying well diversified in the retirement portfolios and just looking at
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  all the costs and allocations. And if you really want to go broke,
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  take your kids with you to Costco. If they try everything and then they
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  want to buy it all, they want it all. The self control and
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  many of you out there, like me, you have a limited self control.
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  So why you should only go shopping when you need stuff? Not as
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  a retail therapy, right, Mendy, you bet you not retail therapy.
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  Make sure we know needs at once and plan well. All right, Hey,
• 12:31
  Mindy, tell us how do we find you on the web? How
• 12:33
  do we connect with you and read your work? Yeah, Carrie, best
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  way to connect with me is you can go to wealth Michigan dot com.
• 12:41
  On there you can read a bunch of our different news reports. You can
• 12:43
  recast her toolkit as well. I really like to focus on education. My
• 12:48
  latest book titled Cultivate Wealth. You can request your free copy there and it'll
• 12:52
  walk you through all the things is of retirement savings, long term care and
• 12:56
  taxes, or you can reach out via email. Mindy at Wealthmichigan dot com
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  happy to answer any questions, get the toolkit out and really continue to plan
• 13:07
  well to live well through a focused retirement. All right, excellent eight.
• 13:11
  We will have a link to Mindysitewealthmichigan dot com in the show notes of this
• 13:16
  interview on Financial Survival Network dot com. While you're there, want to sign
• 13:20
  up for our free newsletter. We've got a new site up. It's called
• 13:24
  Inflation Cafe where dollars go to die, kind of inspired by my personal experiences
• 13:31
  at a well known coffee establishment that shall go unnamed, and how I'm basically
• 13:39
  paying double what I was for the same drink three four years ago, and
• 13:46
  plus the rewards have all been cut back and all that good stuff. Mindy,
• 13:48
  really appreciate you coming on. We will talk to you again soon.
• 13:52
  You have a great day you too. Thanks for having me, Carrie,
• 13:54
  Thanks for listening to Carrie Letz's Financial Survival Network solution to today's trying times.
• 14:01
  For the latest, go to Financial Survivalnetwork dot com. Financial Survival Network now
• 14:09
  more than ever