How Inflation Helps You Refine Your Priorities – Presented by Mark K. Lund, Financial Advisor in Utah

Financial Advisor UtahThe recent high inflation numbers have cooled a bit. Last month the Consumer Price Index (CPI) data release indicated prices are increasing at a 5% annual rate. This was a significant decrease from last summer’s spike of 9.1%.1

The CPI is based on an amalgamation of prices paid by consumers in 243 categories across 32 geographic areas. This complex calculation of 7,776 variables results in a single number. It’s fairly safe to say that the CPI is a very broad measure which encompasses the experience of hundreds of millions of people.2

Depending on where you live and how you spend, your personal inflation rate is probably quite different from the published CPI data.

Although this recent easing of inflation is welcome, the current rate is more than double the average over the past ten years.3

You may have experienced surprise and even dismay at the jump in prices when you’ve gone to make a major purchase, such as a car—or even just eggs at the grocery store. Inflation is emotionally jarring because it challenges our concept of what’s personally affordable.

Its unpredictability is also unsettling. Joe Duran, Head of Personal Finance at Goldman Sachs, says, “Inflation can be a major source of financial anxiety because we do not know how bad it will get or when it will end.”4

Duran gives three things to do to help lessen that anxiety.

1. Don’t panic. High inflation is not likely to last and will not affect everything. “Don’t be reactive,” he says, “but have plans that are adaptable to changing circumstances.”

2. Focus on what you can control. You can’t make prices come back down. You can’t control stock market volatility. But you can control your personal habits. Duran says, “Managing spending is a powerful lever you have complete control over.”

3. Be willing to compromise. Life is full of trade-offs. There are things we’re willing to forego in order to get the things we really want. Inflation just makes those choices a little more stark. Take a fresh look at your values and priorities and ask yourself what you’d be willing to trade to achieve them.

Inflation is corrosive to any economy, which is why the Federal Reserve is so committed to bringing it under control. However, their prescription of higher interest rates is not without side effects. And we should expect to see continued bouts of market volatility as companies and investors adjust to a tighter money supply.

Emotions caused by high inflation not only make life less enjoyable, but they can cause investors to take actions that are likely to hamper their success in the long run. The best way to keep those emotions in check is by having a plan.

If you feel like you need to refocus your goals, or just have questions about saving for retirement in a period of high inflation, talk with your trusted advisor.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020


This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.