F I N A N C I A L S E R V I C E S , L L C
FOCUSING ON THE SMALL THINGS
If you take care of the small things, the big things take care of themselves.
The Federal Reserve wanted 2 percent inflation. That was their target number, and they reached it in May. They consider this level of inflation to be stable.
What does that mean to you as an investor?
Inflation is at its highest since 2012. Right now, it doesn’t necessarily mean much, but when you look to the years and decades ahead, it means a lot. Think about it in terms of your everyday spending. Today, if you go to the grocery store and buy a loaf of bread for a dollar, in 16 years, that same loaf of bread will cost you $2. At a glance, that doesn’t seem like much of a difference, or a big deal at all (though you may be wondering where to find a loaf of bread for a dollar). But when you look at the bigger picture, things start to come into perspective, especially so when you consider your retirement. You have to apply inflation to everything you buy, from that loaf of bread to the carton of milk and everything in between. You also have to think about future vacations and larger expenses. Inflation can add up fast. Over that period of time, if your portfolio doesn’t grow and give you an income that keeps pace, you will not have the additional income to buy the things you need every day. A trip to the grocery store will become a financial pain point.
This is why it’s so important to pay attention to the small things. This includes the fees you pay to your financial advisor or portfolio manager. This also includes making minor changes to your portfolio that keep you ahead of inflation. At Mattson Financial, we’ve always strived to help our clients save on fees associated with our services. This is one small thing we don’t want you to worry about. The same applies to keeping your portfolio ahead of inflation. Remember, retirement is about income flow — it’s the money you get to enjoy throughout retirement. It contributes to the lifestyle you want to lead in addition to all of the other expenses you have (including groceries). That’s why it’s critical to visit with your financial advisor on a regular basis. As the world continues to change, the economy and inflation change. Your investments need to be
adjusted accordingly as well. Adjusting your investments on a semi-annual basis or every few years can very well put you in a position you don’t want to be in later on. As the dog days of summer have you looking for a place to cool down, we’ll be hard at work making sure your accounts are working for you so you don’t have to worry, no matter what the rate of inflation may be. We adjust portfolios to take inflation into account, and we also look for the best ways to maximize returns and lower our fees. If you have any questions about your portfolio or about inflation, give us a call! We’re happy to help you strategize the small things so the big things will take care of themselves in the years to come. –Gary Mattson
Published by The Newsletter Pro • www.thenewsletterpro.com
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