Before diving in to inflation, Mike offers some advice on shopping for a financial advisor: questions to ask and resources to use to check the portfolio they are showing you
Mike then answers questions regarding inflation, such as:
- How has inflation affected things like buying a car?
- How does inflation affect investments? Your lifestyle?
- Typically, people only look at the risk of volatility when considering a stock, but they forget that is a temporary risk. Another, more important consideration is the loss of purchasing power. How does inflation affect this?
- What is the importance of rebalancing your portfolio?
He also discusses ways to deal with inflation:
- Reduce and pay off debt.
- Give appreciated assets instead of cash.
- Stay in stocks, but keep diversified as well.
To read the latest Economic Review mentioned in this program, click here.