Inflation Creeping Into Personal Finances

Justin Lopez April 25th, 2022

If you have a balance on a credit card or an adjustable-rate mortgage, you might be noticing changes in your payments. Higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon.

The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at its highest level in 40 years. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll notice it if you are shopping for a new or used car.

The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.

Time will tell whether higher interest rates will prompt us to consider changes to your portfolio. Remember, your overall strategy considers that there will be transition periods in the economy.

In the meantime, you may want to look at I Bonds, which are issued by the U.S. government and earn a fixed interest rate plus a variable interest inflation rate that’s adjusted twice a year. I Bonds have certain purchase limits, restrictions, and tax treatments, so they generally play a limited role in your financial picture.

If you have any questions about inflation or interest rates, please reach out. We’re always here to help put things into perspective.

Read More By Justin Lopez, AIF®

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Investment advisory services are offered through Concord Wealth Partners, an SEC Registered Investment Advisor.

Join The Conversation

Contact Us

Give us 15 minutes to listen to your situation, then we will connect you with an advisor ready to help you reach your financial goals.

This field is for validation purposes and should be left unchanged.

We live and work near you

Abingdon, VA

955 West Main St. Abingdon, VA 24210

(276) 628-5910

Rockville, MD

11400 Rockville Pike Suite 500, Rockville, MD 20852

(301) 984-4461

Charlottesville, VA

26 Garrett St. Suite A, Charlottesville, VA 22902

(434) 226-2651

Greater Boston, MA

One Kelley Square #208, Worcester, MA 01610

(508) 719-8510

Twin Cities, MN

9490 Compass Pointe Road Woodbury, MN 55129

(651) 401-1670

Huntington, WV

218 13th St. Huntington, WV 25701

(304) 697-7083