That '70's Show: Financial Planning Edition
You may have noticed it. A few weeks ago, local celebrity weather-caster Cecily Tynan wore bell bottoms on the 11pm news.
Perhaps it's true, the '70's are back in more ways than one.
The 1970's are remembered for a number of notable trends aside from bell bottom jeans and long lines at the gas pump...disco and inflation. Experts can argue which of the two is the greater evil, but for our purposes let's focus on inflation.
According to recent data, the Consumer Price Indicator (CPI) in the U.S. increased by 8.5% in March compared to a year earlier. A jump we haven't seen in 40 years or so. Rising food and fuel costs, along with housing, were the major contributors to the jump in the CPI.
The rise in inflation has put both the bond and stock markets under pressure as the Federal Reserve struggles to tackle price hikes without simultaneously stifling economic growth. Along with supply chain challenges, interest rates are beginning to rise putting corporate profits under further pressure.
This current environment of uncertainty, while unsettling, is the perfect time to reflect on the foundation of your financial plan: your objectives, and the roadmap to achieving those goals.
While it may seem like 'it's different this time', the truth is we've been here before and your financial plan was developed to help you achieve your goals, no matter the headlines or hemlines.
If you'd like to review your plan with us, please let us know. We've got the updated capital market assumptions and historical data to put the current markets in context.