It’s time to stop worrying about inflation and do something about it

I recently reconnected with a couple of ski buddies that I hadn’t seen since the end of winter. The main topic of our conversation centered on how our economic environment has changed so quickly. The usual excitement about the upcoming summer travel season was replaced by worry and concern. Price spikes on grocery shelves and at gas pumps have dampened enthusiasm for people everywhere.

Granted, most people were fully aware of supply chain issues, but we’re currently experiencing far more than just disruptions. Gasoline prices have skyrocketed to the point that almost every aspect of our economy has been impacted.

The energy price shock rolled through the economy and has left carnage in the form of prices that were unheard of just a few months ago. And suddenly, a number of well-respected business leaders are warning of even more economic pain ahead.

I don’t pretend to have a crystal ball, but I strongly suggest people take appropriate action to help minimize the adverse impact of inflation. Talk and worry won’t solve the problem.

I apologize if this sounds cold, but first and foremost, please don’t justify any expense by rationalizing that you deserve something. For example, if you can’t really afford a dream cruise right now, this probably isn’t the time to take it. Keep dreaming and save some money.

When you look into a financial mirror, be honest with yourself and your circumstances. Don’t put yourself in a situation where a week’s vacation takes years to pay off.

Maybe you don’t deserve a luxury cruise. Vacations aren’t entitlements. You set money aside for travel, you don’t travel and then figure out how to pay for it. If your budget says you can’t afford to travel, then just don’t do it.

Another step you should make now is to re-evaluate your overall cash flow. For example, if you decided to retire during COVID, you might want to revisit that decision. Can you still comfortably afford to stay retired?

Look how far the financial goal line has moved in just a few months. Everything now costs more than it did when you made that retirement decision. I’m not suggesting everyone un-retire and jump back into full-time work.

You might consider, however, re-entering the work force on a part-time basis.

That might help cover some ongoing expenses without touching your nest egg. And maybe give that nest egg time to bounce back from the recent market pull back.

During these inflationary times it’s also a good idea to make sure your investments are correctly titled and coordinated with your trust. Be certain your IRA beneficiary designations are in good order.

Realistically, that should be done in any economic environment, but I believe it was easy to put that task on the back burner during the pandemic. In fact, I know of several folks who did.

It’s estimated that a million Americans died from COVID. I can say with certainty that some of those deceased persons are still listed as beneficiaries on somebody’s retirement account. Could those somebodies be somebody you know?

Unfortunately, we’ve reached a point where higher prices have impacted our behavior as well as our budgets. First, the pandemic kept us home, now a lot of people are home because they can’t afford to go out.

Email your questions to kenmorris@ lifetimeplanning.com Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial. com/disclosuresThe opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services,

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