Investing when inflation rises

Strategic Wealth

Inflation can create concerns for investors. As prices rise, your money won’t go as far as purchasing power decreases. This causes many to panic and make changes to their portfolio. Fiduciary financial advisor Mike Reeves of Strategic Wealth Designers joined us on the newscast to discuss investing when inflation rises.

“Don’t make any rash decision in a panic,” Reeves says. “The current rising prices we are seeing may be a result of increased economic recovery as the world opens back up. Historically, stocks tend to beat inflation over long periods of time, so it’s important to wait and see if inflation will continue to rise before making any big changes.”  

Appreciation-oriented assets and real assets lend themselves to be a good option for inflation-oriented investing. Industries that have pricing power and can keep up with inflation may be another option. Growth stocks may potentially want to be avoided as future cash flows will be worth less.

“When planning for retirement, inflation is something you should take into account,” Reeves says. “A financial advisor can help factor this in when calculating how much you will want to save for retirement, and consequently, when you are able to retire.”

Recent inflation may not indicate prolonged inflation going forward. To see additional stories surrounding business and economic news for the Indianapolis area, visit https://CBS4Indy.com/Strategic-Wealth and if you have a question for Mike send an email to info@swdgroup.com

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