Jan 27, 2022

A lot has changed since last year. On today’s episode, we’ll be discussing the current state of the economy and how we can protect our plan as we look forward into 2022. 

Taxes

Taxes are the big elephant in the room. We see politicians changing tax rules quite a bit. The advantage we have this year comes with the midterm elections. We probably won’t see tax hikes before the election. 

Spending 

If we look at the economy, a large percentage comes from spending. As a way to stimulate the economy last year, stimulus checks went out to Americans. Going forward, it doesn’t look like spending will slow down. Consumer net worth has actually increased. Power has also shifted back to employees through the Great Resignation. However, inflation is still going to have a big impact, especially when compared to wage growth. 

Inflation 

Inflation has hit historic highs of over 7%. Inflation may be peaking soon, but we have to remember that doesn’t necessarily mean we’ll see prices go back down. They could stay where they are. No one is predicting those prices are going to go backward. We have to be flexible when it comes to our plans and protect our future purchasing power. 

Realistic Expectations

As we go forward into the new year it’s important to set realistic expectations. Stocks normally don’t rise as much as they did last year. Inflation can be a silent killer to your retirement plan. Bull markets can last a long time. The media doesn’t report good things. All of these are important to keep in mind. 

TIMESTAMPS: 

1:38 – Last year  

3:10 – Tax changes

5:15 – Spending

8:16 – Inflation

10:31 – Economy growth

12:56 – Stock market

13:48 – Going to Maui

17:38 – Back on our own

19:31 – Realistic expectations

MORE INFORMATION:  https://www.flemingfinancialservices.com/podcast