As I write this blog, Laura and I are in the final stretch of our business travel. By the time we get back to Sweet Home Alabama we will have been in 10 different states. We managed to mix a little pleasure in and spent a couple of days in Gettysburg with our granddaughter. We toured the battlefield, a bucket list item for all of us. While we were looking over a monument and reflecting on the sacrifice that took place, a tour bus pulled up and emptied. The tour guide rounded up his customers and began explaining what took place at this monument. He asked if anyone had a questions and a lone hand was raised. "Yes" the tour guide responded. "Why are there no bullet holes in the statue?" I was shocked and then I realized, not everyone understands what is taking place before their eyes.
Over the last year, we have heard the Fed talk about inflation as transitory. We now know they were wrong and every time we fill up our cars or trucks, it costs us even more money. The same can be said about food, it costs more every week to eat. Transitory has little meaning when your grocery bill has gone up to the point where your eating habits are changing. There is nothing transitory about this!
The Fed raised rates, 3/4 of a point. Whether you understand the impact of this rate or not, major purchases are going to cost a lot more. Will this tame inflation or put us into a recession? Too early to say for sure, but the Fed has promised even more rate hikes in the future,
While no one has a crystal ball, we have modeled all of our retirement plans utilizing a Monte Carlo scenarios. We are able to show what a Bear Market looks like in your plan and then we stress test again. We can't predict what the future holds, but we can take steps to make lessen the impact of events like this.
But back to statues and bullet holes. If the economic news is hard to understand, you aren't alone. Even the Fed has had trouble calling this. Give us a call, we can help you get a plan together to retire on your terms.
I just filled up the car at a Sheetz gas station, it cost almost $80. Sheetz is what I said!
Mike Mickels is the President of CochranMickels Retirement Specialists and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. They also provide retirement and benefits training to Federal employees.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.