M Financial on Money
Inflation and Market Volatility
Finding your way through today’s financial challenges
Inflation has emerged as one of the top financial concerns for investors as they size up the economy for the rest of the year. For good reason – The Consumer Price Index (CPI), the most well-known measure of inflation, climbed 7.5% over the last year through January, its highest reading since 1982.
Inflation is a thief; it steals the purchasing power of your money.
Retirees have something else to consider: they are subject to a higher rate of inflation than 7.5% CPI. Why might this be the case? Healthcare inflation has outstripped CPI inflation by as much as 3% in recent years.1 And retirees may expect to spend nearly $300,000 to cover medical costs in retirement.2
Volatile Markets
When there’s uncertainty about the economy, the stock market may be more volatile while it searches for answers. The calendar had barely flipped to 2022 and investors were reminded that even attractive long-term stock returns come with a cost: volatility. The S&P 500 Index fell nearly 10% from January 3 through January 27. After such a steady march higher in 2021, the dip may have caught some investors off guard.
No matter which way the market is moving, trying to choose the “right” time to buy or sell can be stressful and counterproductive. If you’re confident that your financial plan spells out strategies to help meet all of your financial goals, now is the time to follow the plan.
If you’re not confident in your plan for the future, now is the time to start building one. If you fail to plan, you plan to fail. Empower Yourself with a Qualified Professional When inflation and volatility are high, it may be tempting to make more sweeping changes in response to increasing prices. If you are concerned about the outlook for inflation or stock market volatility, please give us a call. We’d welcome the chance to review your situation and provide some guidance.
Empower Yourself with a Qualified Professional
When inflation and volatility are high, it may be tempting to make more sweeping changes in response to increasing prices. If you are concerned about the outlook for inflation or stock market volatility, please give us a call. We’d welcome the chance to review your situation and provide some guidance.
57 Maple Avenue Avenue, Marlton, NJ 08053
856-810-7701
www.financial.us • www.CanIRetire.us
