And looking at annual beans. We need to look at both of those,
and so we see influential factors. Right. Energy prices are somewhat largely to
blame here for the increase in the headline for inflation. Like I said,
that gas price increase of about three point eight percent. Airlines we're coming up
on spring break, right, so a lot more people are traveling. We
see prices raised about three point six percent, and even just food cost increase
on AVERORADEM about chin point two. So we need to see this and I
think we're going to see that trend continue. You are listening to Carrie let'sa's
Financial Survival Network where you get valuable information you just can't find anywhere else to
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Financial Survival Network now more than ever, and welcome you are listening to
and watching the Financial Survival Network. I'm your Earth, Kerrie Loitz. Don't
mind the eye, just a minor little thing that takes five days to get
rid of and very annoying. Doesn't look great, but hey, it is
what it is so well, we got a new guest on that I know
you're going to want to hear from. Her name is your name is a
Mindy Magadosh and Mindy retirement expert. And we're talking about inflation here. So
what's the good news on inflation. Well, we'd like to talk a lot
about the good news on inflation today is you know, consumer prices raised three
point two percent over last As we look at inflation, it remains elevated,
you know, ten year treasures about four point one percent. But I really
think it as we take a look at this zero point four percent in presolver
previous month is not you know, it's not a big pitfall of oh my
gosh, we weren't prepared for this. We've been prepared. We always talk
about here at the firm, just being prepared and having a plan is key.
And I do think that February, with the slightly higher than average the
gains, we'll see a little bit of a stick shelter inflation to largely to
blame for, you know, just core inflationary readings. And when we take
a look at economists, this is really what we're seeing here. And I
think as we get closer and closer. Both measure you know, economic forecast
month over month with increases, So we know that data as we see even
from Bloomberg and such. What does it mean We better be saving though,
we better be knowing where our funds are going. How do we have a
plan and stick to the core basics? Is really what I think here,
Carrie. Yeah, so you think it's going to abate or you think it's
going to get worse, Well, I think it possibly could get worse,
because really, when we look at these measurements, when we are forecasting this
point four percent increase over and over with data the core basis strips more volatility
and costs of food, we see gas prices toging, and really in February
we see the climb a little bit point four percent over prior month, and
really these point two point three point four we feel like it's not a lot,
But in the scheme of things, this is monthly, this isn't year
over year. So we take a look at these monthly changes. Both measurements
are higher than the economics had really thought. We're expectations and looking at annual
beans. We need to look at both of those, and so we see
influential factors. Right, Energy prices are somewhat largely to blame here for the
increase in the headline for inflation. Like I said that gas price increase of
about three point eight percent. Airlines were coming up on spring break, right,
so a lot more people are traveling. We've seen prices raised about three
point six percent, and even just food costs increase on averagem about two point
two. So we need to see this and I think we're going to see
that trend continue. All right, So higher inflation, you know, you
would think with higher interest rates would come you know, lower housing price,
and yet that's the opposite. We've really been seeing opposite there. And I
think that when we take a look at housing prices out a hole, one
nice thing would be is how do we actually see when we see inflation on
the rides, we see interest rates changing, we're seeing that housing market fall
right as far as how many new home buyers. We're going to see that
continue to scale inflection with the market. So when we see these interest rates
tire, we're going to see more of a whole pattern there. And I
really just think that the market largely expects, you know, some of the
central bank to begin, you know, cutting rates maybe by June leading time,
and so we'll continue to see this. We've seen a flow to even
a labor market. So with the labor market continuing to weaken some, it's
taking people longer time to find jobs and earlier. We're kind of in the
early steps of signed here, so not such major layoffs, but just if
you are looking for a new job, it's taking longer to kind of plan
and forecast one as well. Well, you know, you mentioned travel,
and the airlines have been giving huge pay in creases to their pilots forty plus
percent, fifty percent, and to their flight attendants and basically all their employees.
So there's no place for airline prices to go. Ticket prices, but
up right, we really yeah, and we're seeing that, we're seeing it
go up. We're seeing a little bit higher demand too in travel these days.
So with the higher demand and travel, we are seeing, even the
firm standpoint of the financial side, more people are traveling now, so they
call it kind of living their best life. So and we're seeing way too
many people are actually spending time on their one or two week vacation, on
the time that they put into planning and their travel needs at hotels and what
they're going to spend there. So we are openings really firmly talking to folks
about let's make sure that we're porting in time plan will retire. Well,
we call it our focused journey to make sure that we have a budget.
Do we know when our expenses are and let's really look at you know,
if you are looking to travel more. We know that costs are going up,
haven't we you know, on the foot of side of things prepared for
that. We don't want to have more credit card bills down the line,
and we need to make sure we're investing in saving it up at our retirement
plan, making contributions to the four to one case of I rate to save
for later when you come into that distribution thing, in saving for the future
as well. Yeah, and trust me, it's a lot closer than you
think. So, but you know, we have this deficit. We're adding
a trillion dollars every ninety days to the deficit. Something's got to give here,
right, Something's got to give. I think we're going to see a
lot of this with tax rates. When we talk a lot about tax dvanagings
here and I even say it can go on twofold, right, So the
taxes that we're paying today current tax laws are due to sunset the end of
twenty twenty five, so we know tax rates are growing up. We also
know that we're going to see this influence you know, all classes, right,
all classes of citizens that are going to be paying a higher tax rates.
So whether it's just on what we're spending budget lies, extra trips,
travel, paylans, our food, gasoline, so not only just those,
but as we take a look at the CPI, it's also going to pertain
to when we're with draw strategy inside of retirement, where's our income coming from,
how do we diversify asset classes? And let's make sure that we're really
careful of the legislative risks that we are facing here, and you're absolutely right
there, Carrie, to make sure that when we're in even with draw our
contribution strategies, are we being as tax efficient as possible, because I feel
we are due to pay heavier taxes in the future and those probably aren't going
up, so we need a plant accordingly, All right, So market,
so what do you what are you supposed to do in this inflationary environment?
How are you do you you know it's hard enough to make ends meet,
how do you up your contributions to your retirement plan? Absolutely? Right?
So as we are taking a look at this, you know environment, your
dollars and spending as far as you used to. Right, so, we
know that things are costing more. Food is costing more, services are costing
more. So I think that if we can really focus on spending the first
hour of every day and just investing into your own future and putting that away
for your retirement saving, and if I can encourage any of you retire to
retire and plan to retire in a tax re envelope. So if you have
raw fool or KA raw forral TREEV options, please contribute there. You'd be
glad you did. So that when you're in your withdraw strategy, just think
of that. If you're in a twenty percent tax bracket and you can save
twenty more cents today in a tax re envelope, do so. It can
grow an a keeguy tax for you will draw it tax free. And just
think of things in your expense land or your budget sheet that you might be
able to cut back in. Maybe you don't need that extra cup of coffee.
Maybe that extra trip to go out to dinner tonight could be something that
you do a home at dinner tonight. So just some of those things to
carve out very small pieces will continue to move that threshold for you to be
able to focus on that future. Yeah, I think back the head of
kel Out gotten a hot world by telling people they should eat cereal for dinner.
You know, well, you know, I've seen it happen. We
do have three own kids. It's happened a few times. But I think
if we plan accordingly, look too right, look at it, look at
food places, look at what's on sale, plan your week. You can
plan your meal, plan all out week by week, and shop around the
exterior on the you know, of the of the shopping center and don't get
bomb down. Then those extra things in your car. All right, Well,
you know he's kind of like Marie Antoinette basically sell it telling the public
let them eat cereal. Right, Oh, we don't want to tell them
that. We do want to make sure that we're health based and health conscious
and being focused there. But I definitely think that you know, hey,
you can you can definitely make dinner at home. That cuts down then costs
just different items. As you take a look at what goes on sale week
over week, try not to waste, you to think of good ways to
have leftovers, anything like that. I think that we can all put into
a good plan. I know we've sure them done well. I'm a farm
girl, born and raised out a farm, so we just kind of know,
Hey, how do we get creative with some of these things? And
it still can all be pretty tasty. And you can still then say and
look forward to the future and make sure that we're planning ahead to forecast what
we see coming. You know, like one thing I found recently, and
I'm not the coupon clipper by any stretch. They got to make it as
easy as possible for me or I can't be bothered. But CVS where you
used to get this receipt as long as the Dead Sea scroll, Now they
got an app and you can get all that savings. And if you get
this extra care cord, I think it costs you twenty bucks. They give
you ten dollars every month, and then you buy all this other stuff that
you're going to buy anyway. The key here is not impulse out, but
you wind up saving twenty thirty dollars a month on stuff that you're buying anyway,
you know, like sometimes I don't know how CVS does it. Sometimes
I go there and I'm waiting for them to pay me money. Sure,
Hey, you know, I think that they're all looking for ways to make
sure you're shopping at CBSS and that some of their competitors. I think we
could say that in a bunch of different realms, look at you know,
the online shopping shipped and admire and all of this even to us. You
know, if you take a look at uh uh, middle aged families raising
children, you definitely spend more when you take the children with you, or
even if you go on an empty stomach to the grocery store, then you
will look. You can actually take a look at maybe items are on sale,
what are they looking at for the week. So I think if we're
strategic in that and even seg that out, we help a lot of our
clients really look at what should we be spending weekly and they trying to stay
within that realm budget wise, So we know this is what we're saving,
this is our fun money, and this is actually what we're going to use
and suber goods. It's really helped, you know, really significantly move that
needle to move the dial for them. It's really not a whole lot different
than making sure we're staying well diversified in the retirement portfolios and just looking at
all the costs and allocations. And if you really want to go broke,
take your kids with you to Costco. If they try everything and then they
want to buy it all, they want it all. The self control and
many of you out there, like me, you have a limited self control.
So why you should only go shopping when you need stuff? Not as
a retail therapy, right, Mendy, you bet you not retail therapy.
Make sure we know needs at once and plan well. All right, Hey,
Mindy, tell us how do we find you on the web? How
do we connect with you and read your work? Yeah, Carrie, best
way to connect with me is you can go to wealth Michigan dot com.
On there you can read a bunch of our different news reports. You can
recast her toolkit as well. I really like to focus on education. My
latest book titled Cultivate Wealth. You can request your free copy there and it'll
walk you through all the things is of retirement savings, long term care and
taxes, or you can reach out via email. Mindy at Wealthmichigan dot com
happy to answer any questions, get the toolkit out and really continue to plan
well to live well through a focused retirement. All right, excellent eight.
We will have a link to Mindysitewealthmichigan dot com in the show notes of this
interview on Financial Survival Network dot com. While you're there, want to sign
up for our free newsletter. We've got a new site up. It's called
Inflation Cafe where dollars go to die, kind of inspired by my personal experiences
at a well known coffee establishment that shall go unnamed, and how I'm basically
paying double what I was for the same drink three four years ago, and
plus the rewards have all been cut back and all that good stuff. Mindy,
really appreciate you coming on. We will talk to you again soon.
You have a great day you too. Thanks for having me, Carrie,
Thanks for listening to Carrie Letz's Financial Survival Network solution to today's trying times.
For the latest, go to Financial Survivalnetwork dot com. Financial Survival Network now
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