CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
1021223-00006-00
Avraham "AY" Rappaport, CLTC
President, Financial Professional
Yaniv "Jay" Natanov
President, Financial Planner
Eli Rappaport
Vice President, Financial Planner
Shlomo Rosenstein
Financial Professional
Ozzie Marizan
Financial Planner
Joseph Greer
Employee Benefits Administrator
Dylan Pinsky
Client Relations Manager
Premier Financial
6395 Dobbin Road, Suite 102
Columbia, MD 21045
Phone: 240-309-6001
Email: dylan.pinsky@prudential.com
Website: premierfinancial1.com
May/June 2023
All About Inflation
You don’t have to see government statistics to know that the cost of just about everything is going up. All it takes is a weekly trip to the supermarket or your favorite department store to know that, after several years of low inflation, the purchasing power of your money is declining.
The CPI
The Bureau of Labor Statistics (BLS) measures inflation using the Consumer Price Index (CPI). The CPI tracks changes over time in the average price of a “basket” of goods and services in eight major categories: food, housing, apparel, transportation, health care, education, communication, recreation and other goods/ services.How It Happens
Inflation occurs when prices go up and the dollar’s purchasing power goes down. An increase in demand or a decrease in supply fuels inflation. Manufacturing and supply chain issues over the past couple of years have contributed to shortages of certain materials, resulting in higher production costs. As production costs rise, so do prices.Inflation’s Impact
Mild inflation can be good for the economy, since consumers tend to spend money, rather than put off purchases for later. But once inflation escalates and takes hold, prices rise and consumers stop spending.
The Federal Reserve raises interest rates to help control inflation. As rates increase, people who have variable interest rate debt, such as credit card debt, adjustable-rate mortgages, and home equity loans or lines of credit, will pay more.
Inflation and Investments
Some assets, including Treasury Inflation Protected Securities (TIPS), floating-rate bonds, real estate, and certain stocks and commodities, may provide a hedge against inflation. Stock prices often rise as companies adjust to meet higher supply chain and production costs. However, stocks may experience increased volatility and price fluctuation.Inflation and Retirement Savings
Current retirees are likely to see the value of their pensions and savings decline as inflation increases. They’ll spend more of their income to pay for the same lifestyle they’re used to. People who are still working and saving for retirement will need to set aside more money in their retirement accounts, as the amount they’ll need to save for a comfortable lifestyle keeps increasing. Your financial professional can help you determine a new target amount.1056764-00002-00
Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Dylan Pinsky is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Premier Financial and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.