Building Wealth If your wallets have been hurting lately, you're not alone...
We're all going through it.
Just the other day, I (Jeff Havenstein) paid $20 more than I usually do to fill up my car with gasoline... And every friend I talk to lately has been complaining about the same thing. Gas prices are around $4 a gallon here in Baltimore. On average, they are up a staggering 47% over the past year.
For those who commute to work or travel frequently, it's most definitely adding up.
And gas prices aren't the only thing that is higher...
It's across the board. Prices of things we buy everyday are soaring.
I'll openly admit that I go to Chipotle way more than I should. It's convenient for lunch, and it's a lot healthier than a burger. A few years ago, I remember paying around $6 for a burrito. Over time, I've endured prices going up to $7 and then $8.
Now, I'm paying around $9 for that same burrito... And I'm even debating at what price it's still worth going there for lunch.
At the grocery store, everything seems more expensive. The average price of a pound of chicken has gone from $1.43 to $1.62 over the past six months... The price of bacon is up 5.3%, bananas 6.1%, and eggs 17.5%.
Even the price of electricity is up 8% over the past 12 months.
Inflation is hitting the country hard. Meanwhile, wages have not kept pace.
Many folks across the country have been put in a position where they have had to tighten up their budgets and cut back on things like travel and entertainment.
It's laughable to think that so many "experts" thought inflation would be "transitory." That has sure been proven incorrect over the past few months.
Trust me, higher prices are here to stay. You need to be prepared.
And that's especially true if you are in your retirement or close to it.
As an example, consider a weekly grocery bill when there is 1% inflation compared with 4% inflation. Due to the power of compounding, a $100 weekly grocery bill turns into $110 over 10 years at 1% inflation... or $148 at 4%. If you spread that across all of your daily costs, retirement gets a lot more expensive.
The inflation numbers for February were released this morning, coming in at 7.9%. That's higher than what most people expected. And the consumer price index is at a fresh 40-year high.
Again, I don't just think inflation is happening in the short term. I'd expect inflation around 4% to 5% for the next few years...
Also, high inflation readings have investors panicking. They've been selling in droves and pushing down the major indices. The S&P 500 Index is in an official correction, falling 13% this year. And the tech-heavy Nasdaq Composite Index is in a bear market, down 20% since its high in November.
So your monthly bills have become more expensive... and your investment accounts have been taking a beating. It's a scary time for sure.
I'm writing to you today to tell you that there is light at the end of the tunnel. There are ways to survive this inflation and market volatility.
Unfortunately, the answer is not to sit on your hands and do nothing. This is a storm that is not going to just go away.
Dr. David "Doc" Eifrig has been warning about inflation for over a year. He has been preparing his subscribers for a moment exactly like this.
Because the situation is so scary, Doc recently went on camera to talk about something he calls "Retirement Lockdown."
Basically, Doc believes that folks in their retirement and near retirement are in serious trouble given everything that is going on today. He has even gone as far as to say, "Over the next 12 months, I believe you'll face some of the hardest financial challenges in your lifetime."
If you have been reading Doc's work for any amount of time, you'll know that he doesn't throw out warnings without the data to prove it.
I encourage everyone who is worried about inflation... the stock market... and the war in Ukraine and Russia to listen to Doc. And if you watch his brief presentation about the Retirement Lockdown, you'll learn what Doc recommends you do with your money before April 30 – completely for free.
Click here to get all the details.
What We're Reading...
- Something different: Amazon rainforest is reaching climate change 'tipping point.'
Here's to our health, wealth, and a great retirement,
Jeff Havenstein with Dr. David Eifrig
March 10, 2022