Jason and Alex begin the show by discussing a concern on many peoples’ minds amidst the pandemic: how will probable inflation from stimulus programs affect our life savings? They highlight the importance of having a plan in place to protect life savings from inflation amidst sky high fiscal stimulus. Not only during a crisis and after, but most importantly before. They begin by explaining why we need to plan for inflation, as inflation is a major way life savings are diminished if not properly planned for. Jason points out inflation has been 4% on average annually over the last 50 years. Bottom line is peoples’ dollars need to earn more or their value will be eroded over time.
NBA and philanthropic super star Brad Holland joins the show, bringing an authentic perspective on the challenges families and non-profit organizations, and businesses, are facing amidst the pandemic. CEO of Boys and Girls Club of Carlsbad, Brad shares his concerns about not knowing where the economy is headed, as he works hard to keep the local Boys and Girls Club’s doors open to 800 kids a day who need their services. He also shares his concerns for his own family’s financial lives. One of which is higher taxes. Jason agrees that tax strategy is even more important nowadays, in a portfolio and financial plan.
Jason and Alex then present specific financial strategies to keep in mind nowadays. Including the timeless importance of having an optimal plan for your life savings in place before crises, and sticking with it during and after, while rebalancing allocation as needed. They caution investors to not take any wild reactive actions like going into all gold or cash, or changing asset allocation. They end the show by stressing the importance of people having faith in the long-term resilience of capitalism, when making decisions regarding their life savings. And how running scenarios in financial planning, like not having social security benefits in retirement, can help to reduce stress during times like this, and help families prepare for the potential effects of economic crises They also discuss how stocks, commodities, real estate and cryptocurrency perform in inflationary times.
In this show you will learn about:
– The importance of having a financial plan in place before, during and after times of economic crisis
– What you can do strategically to protect your life savings from inflation
– How running scenarios in financial planning can help to reduce stress and plan for potential effects of economic crises on life savings