Latest / Financial Survival Network / New CPI Numbers, Just How Bad Are They? -Ask Brad Williams #5923

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New CPI Numbers, Just How Bad Are They? -Ask Brad Williams #5923 · Financial Survival Network

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  Well, we're paying the price for all that free money that happened over the
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  last decade, and now things are starting to catch up. It's like the
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  tighter you pull a rubber band, the faster and harder's going to snap back.
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  And then when we look at all the geopolitical situations, especially in Israel
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  right now, them being so close to the fuel sources, the oil sources
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  of the ramifications and ripples to the economy. With Ukraine that being such a
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  big energy source, so energy is big plus with Ukraine, and they're grain
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  that has ripples effects as well, So we're not holding a good card hand
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  Right now, you're listening to Kerrie Let's's Financial Survival Network where you get valuable
• 0:39
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• 0:44
  need the Financial Survival Network now more than ever. Go to Financial Survivalnetwork dot
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  com and get your free newsletter and gift. Financial Survival Network now more than
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  ever, And welcome. You are listening to watching the Financial Survival Network.
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  I'm your host, Carrie Lutz, and hey it's Thursday, October twelfth.
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  We just got the PPI numbers yesterday and the CPI numbers. Today, we're
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  talking to Brad Williams to get his take on it, and you can find
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  brad site. Ask Bradwilliams dot com. If you got a quick inner comment
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  what you think? Do you think inflation's going higher? Lower? Sideways?
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  Just send us an email with your thoughts and anything else. Klatcarrie Lutz dot
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  com. Hey Brad, great to have you back on the show. So
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  we get the CPI number. What's your take? Well, we're paying the
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  price for all that free money that happened over the last decade, and now
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  things are starting to catch up. It's like the tighter you pull a rubber
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  band, faster and harder's going to snap back. And then when we look
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  at all the geopolitical situations, especially in Israel right now, them being so
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  close to the fuel sources, the oil sources ramifications or ripples to the economy.
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  With Ukraine that being such a big energy source, so energy is big
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  plus with Ukraine, and they're grain that has ripples effects as well. So
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  we're not holding a good card hand right now, No we are not.
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  So what is the solution for an investor? How do you protect yourself against
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  what's happening here? Well, I think you know, if you're very young,
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  this is an opportunity because as prices drop, you're buying it a discount.
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  The problem is ideal primarily with the retirees, and they don't have that
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  time to make up when they take that risk. So looking at income sources,
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  looking at alternative sources of investment that do good in times of high inflation,
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  that's key. Okay, So what first, Just let's review the numbers,
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  because many of you out there might not have seen them, might be
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  unsure of what it is. What did we see here? We saw significant
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  get rise this month in the in the core CPI and energy and food were
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  two of the big drivers there. And now as we're seeing the inflation,
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  then we're going to have the issue of the Federal Reserve raising interest rates and
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  then that crowding out uh individual buyers from the from the financial markets because the
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  government's going to be need more money to pay interest on the debt. We're
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  looking at a two possibly a two point two trillion dollar deficit. Jeez,
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  that's like that's a lot of money, isn't it. Well, you know,
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  Everett Dirkson said many years ago, a billionaire a billion there pretty soon
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  you got some real money. Well, I think we're long past average numbers.
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  Yeah, I think we're at a trillion here and a trillion there and
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  pretty so you're looking at some real money, right, that's correct. And
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  then when when you look at you know, the things happening at the border,
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  Carrie, we just investors who are at or near retirement need to play
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  it close to the vest and they can't play by the same rules that got
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  them to the game, right and those rules? What were those rules and
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  why don't they apply now? Brad Well, when you have you know,
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  your typical seventy thirty stock bond portfolio, Well, if you don't own the
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  individual bonds and your bonds are in mutual funds, you've pretty much gotten cream.
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  You know. If you own the bonds yourself, which we do for
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  our clients as individual managed portfolios, you at least have a maturity date where
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  you get your money back. But in a mutual fund you don't own the
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  bond nor the interest rate, so you get creamed in times like this,
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  right, Yeah, you're getting killed. Right, So you want to stay
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  away from bonds or do we go to short term bonds? Well, shorter
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  term or you know, if you're buying bonds for the income that you're going
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  to get from it, and you're satisfied with that income, then you just
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  ride out the storm and the fluctuations. It'd be the same as if you
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  bought a route property and maybe the neighborhood went through some changes positive been negative.
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  As long as you're getting that rent and you're getting money on your money,
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  you're good. You know it'll mentually come back. But you know it's
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  that short term fluctuations that you've got to avoid. Yeah, that can definitely
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  hurt. Hey, so the short term fluctuations, but you know it's a
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  lot trickier than that. I mean, what are you supposed to do here
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  when inflation's going up? Uh, you know, the economy is looking real
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  bad. How can you really protect yourself? Well, Having the portion of
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  your assets obviously in precious metals is one edge, but you've always got to
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  look at those precious metals is what they really are. Their edge. They're
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  not an investment. If you want to make money on the metals, you
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  buy the paper and trade the futures and options. But if you're wanting to
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  hold value on your portfolio, then you own the hard metals to do that,
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  but you don't want to. You don't want to go out and cash
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  out your IRA and put it all in gold. But and you know,
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  having some of that after tax money sitting around as a hedge will help you
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  during times like this, and then looking at more conservative income oriented investments is
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  good. Okay, So all right, and what age is are you that
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  this is particularly important? Well, you might look at your life like climbing
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  amount You've got the accumulation stage where you're climbing, and the distribution stage where
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  you're coming down the mountain. Most deaths happen on the way down, so
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  you've got and then in the interim you've got that preservation stage where say when
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  you're fifty five you need to start de risking, and then once you hit
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  sixty you're probably in that five year preservation stage where you're shifting over to the
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  to the income. I look at things like a simple formula TR equals I
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  plus G total returns equals income plus growth. And so as you get into
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  retirement and close to retirement, you're shifting to the eye which is in and
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  away from G, which is growth because G can turn into L, which
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  is lost and So what you don't want is what happened to a lot of
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  people in two thousand and two thousand and three, in two thousand and seven,
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  two thousand and nine, where they had to delay their retirement because there
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  was a massive market drawback. That's kind of a drig. So are you
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  telling people to keep working longer, to keep finding new ways to get cash
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  flow besides from their investments. If you like your work and your health is
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  you know, allowing you to do that, probably working a little longer than
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  you expected in this environment might be a good idea because then you're still putting
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  money in your in your reserves and not taking it out even when you take
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  it out. I always use the equation of you want to live off the
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  eggs and not the chicken. So the dividends, the interest that's what you
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  want to live in. You might want to look at a guaranteed sources with
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  the interest rates where they are. Certain annuities are very popular now because of
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  the inherent guarantees they have. So sitting down with an advisor who really understands
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  the eye phase of your life is important, Yes, very important. All
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  right, So your clients, uh, what do you Obviously you review them
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  regularly, and I assume you're giving advice along these lines. Yes, I
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  am, and and a lot of them are already there. In fact,
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  Carrie, when I go when we go through times like this, I don't
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  get a tremendous amount of panic phone calls because they're ready for They understand the
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  implications of the economy and that The key is is you want to be able
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  to ride the way, and uh, you got to you got to be
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  structured properly to do that, or else you're you're going to you know,
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  loose sleep Yep, I can totally understand that, and yep, uh,
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  well hey, so, uh you know what with one more interest rate increase
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  ahead, is that baked in the cake already the markets and everything else.
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  I think so, I think it pretty much is where the anomaly will come
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  as if they decide to go up again because of geopolitical things. Right,
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  you know, typically by the time the interest rate happens, it's already,
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  like you say, baked in the cake. People have already anticipated then.
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  All right, well, hey, thanks for giving us this update. Ask
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  Bradwilliams dot com best place to find you, Yes, and always appreciate coming
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  on your show. Carry all right. Likewise, we love having you and
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  be well. We'll talk to you again soon. If you got a question
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  for Brad myself, kl at Kerrie luds dot com. That's the place to
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  send the email and we'll be having you back on next month, Brad.
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  See what they do then, Will they raise or will they cut? You
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  know, I think a lot of it's going to have to do with the
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  geopolitical situation here, isn't it? Yes, it is, yeah, right
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  now, it's the state of flux is probably a good term. All right,
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  state of flux it is. We'll talk to you soon, Brad.
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  Thanks, Hi, Kerrie, thank you, thanks for listening to Carrie Letz's
• 10:05
  Financial Survival Network, your solution to today's trying times. For the latest,
• 10:11
  go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever,