{"id":1319,"date":"2022-08-22T06:00:06","date_gmt":"2022-08-22T13:00:06","guid":{"rendered":"https:\/\/humanitywealth.com\/uncategorized\/inflation-and-investing-why-a-financial-plan-matters\/"},"modified":"2022-08-29T23:02:42","modified_gmt":"2022-08-30T06:02:42","slug":"inflation-and-investing-why-a-financial-plan-matters","status":"publish","type":"post","link":"https:\/\/humanitywealth.com\/financial-planning\/inflation-and-investing-why-a-financial-plan-matters\/","title":{"rendered":"Inflation And Investing: Why A Financial Plan Matters"},"content":{"rendered":"

As a humble financial advisor in the San Ramon area, it’s my job to tell you that it\u2019s a fact of life that inflation is part of the human experiences we know it. Historically, it has been a steady increase in prices, but there have been times when inflation has spiked sharply. Yes, inflation can wreak havoc on your finances if you don\u2019t have a plan in place, so prepare for the inevitable and prepare for life\u2019s uncertainties by:<\/span><\/p>\n

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  1. Understanding inflations impact on investments<\/span><\/li>\n
  2. Exploring investments to hedge against inflation<\/span><\/li>\n
  3. Having a financial plan in place that equates for inflation<\/span><\/li>\n
  4. Sticking to your long-term financial goals<\/span><\/li>\n<\/ol>\n

    What is inflation and how does it impact investments and financial planning?<\/b><\/h2>\n

    We are not here to instill fear; we are here to level the financial playing field and offer <\/span>financial literacy<\/a><\/strong> to the masses! For example, get started in <\/span>learning what a Bull Market<\/i> vs. Bear Market<\/i> is<\/a><\/strong>. That\u2019s <\/span>why<\/span><\/i> we provide subscription-based financial planning in the Bay Area.\u00a0<\/span><\/p>\n

    As a wealth management financial advisor in San Ramon, it\u2019s our duty to help you understand how inflation can impact your plan and investments.<\/i><\/b><\/a>\u00a0<\/i><\/b><\/h3>\n

    Fact<\/b>: inflation is a general increase in the price of goods and services. It can be caused by a variety of factors, including an increase in the money supply, an increase in demand for goods and services, or both. Due to supply chain issues, factors that escalate inflation include global turmoil, natural disasters, and\/or pandemics.<\/span><\/p>\n

    The process of inflation occurs when there is more demand for goods than there is supply of them at current prices. This can result in firms raising their prices so they can make more profit on each unit sold. The increased cost of production from higher wages leads to inflation by increasing the price tag on consumer goods sold in stores.<\/span><\/p>\n

    Discuss with a professional at Humanity <\/span>how much you need to save up before retirement<\/a><\/strong> so that your nest egg doesn’t lose value due to inflation.<\/span><\/p>\n

    Explore different types of investments to help you manage inflation<\/b><\/h2>\n

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    If you’re looking for a long-term investment to help you manage inflation, stocks and bonds are a common way to go. Stocks give you a chance to earn more by investing in growth companies (i.e., companies that are expanding), while bonds provide steady returns over time and are generally considered low risk (as long as their issuer doesn’t default).\u00a0<\/span><\/p>\n

    A good rule of thu<\/span>mb is that if you have an emerge<\/span>ncy fund set up with three to six months’ worth of living expenses saved up, then it’s okay to invest some of that money into stocks or bonds instead of keeping them all in cash.<\/span> Discuss this with an affordable financial advisor in the Bay Area at Humanity Wealth Advisors, as your risk tolerance and time horizon will determine your asset allocation.\u00a0<\/span><\/p>\n

    \u201cYou need a financial plan that is as unique as you! Humanity is an all-inclusive financial advisory firm in San Ramon.\u201d \u2013 Harry Sherdil<\/i><\/b><\/h3>\n

    Why it’s important to have a financial plan in place, even if you’re not worried about inflation<\/b><\/h2>\n

    While inflation is not a cause for concern for everyone, it is important to have a financial plan in place. Financial planning can help you reach your goals and avoid costly mistakes. For example, if you are thinking about buying a house but don’t know how much money you should be saving each month to pay the mortgage, it may be worth taking some time to sit down with an experienced professional and come up with appropriate savings targets.\u00a0<\/span><\/p>\n

    Read: <\/span>How to Pursue Financial Intimacy with Your Partner<\/a><\/strong><\/p>\n

    How to create a financial plan that works for you and your unique situation<\/b><\/h2>\n