We are back today with our conversation on economic storms brewing in 2022. Inflation, taxes, stock market dips, and geopolitical turmoil are all things that may or may not impact our retirement in the near future. So, how do we prepare for the worst but hope for the best?
Are you worried about the stock market? Well keep in mind the stock market drops on average 5% three times per year. That should be an expectation. The real lesson is to not get too enamored with the fear of stocks falling or too excited about skyrocketing stocks. Don’t put all your eggs in one basket – diversify!
If you own a bunch of stocks, you aren’t necessarily diversified. That’s why sitting down with an advisor is so important. There are large and small company stocks, growth stocks, etc. Diversification is about owning a little bit of everything.
You’ve probably seen the news recently and the new geopolitical threats when it comes to Russia and Ukraine. We don’t want to downplay the threat, but we need to remember geopolitical tensions are the norm. These events will impact the market, as they always do. But you can count on this turbulence and prepare your plan accordingly.
Inflation is impacting everyone. The top expenses we see are in housing, healthcare, long-term care insurance, utilities, insurance, and more. This might be a signal to change our spending habits as best as we can. If you have any questions for Don reach out at (732) 784-2867 or don@doncash.com
Listen to the full episode to learn more or skip around to certain topics.
[0:49] – Kids are back in school
[4:37] – Historical tax rates
[6:54 ]– Stock market turmoil
[9:33] – Selling out of panic
[10:56] – Diversification matters
[12:57] – Geo-political risks
[15:13] – Supply chain issues
[17:51]– Increase in rent
[19:12] – Top expenses
[22:39] – Quality of life