Fragasso Financial Advisors, an investment management and financial planning firm, has released a whitepaper guide that helps readers understand inflation and how it can impact their investment strategy. This whitepaper guide, entitled “I” is for Inflation, outlines why inflation is heating up, how to contain inflation panic, and how to mitigate the threat of inflation to your investment portfolio.
The title of this whitepaper guide describes the graphical representation of our economy. The pandemic has had a global economic effect, and we are now entering a period of recovery. Economists and investors often use letters to describe the drop and recovery as seen on a graph. For example, “L” describes a sudden drop and a lasting leveling off period and “V” describes a drop off with a sharp recovery. On the other hand, the letter “I” represents inflation, a word that makes many people nervous.
The authors of the whitepaper guide do a great job at dismantling the fear surrounding inflation and helps contain “the inflation panic.” The Pittsburgh financial advisors team at Fragasso Financial Advisors have conducted their own research by internal portfolio management and financial planning professionals. In the whitepaper guide, they share three reasons as to support their theory of temporary inflation. First, though the authors agree that consumer demand will remain strong for the next few months, they don’t believe long-term inflation is a threat. This is primarily because if the threat continues to loom, the Fed has tools to reign it in. Additionally, the long-term bond market shows little fear of inflation as the “bond vigilantes” who control trillions in purchasing power have proved indifferent to rising prices. Lastly, demographic trends, automation, and debt levels have produced deflationary pressures for over a decade, and it’s too early to say the opposite will occur.
The recent rise to inflation has had many consumers worried about their investments and lifestyle. Still, Brianne King, CFP and Manager of Financial Planning at Fragasso Financial Advisors, reminds readers that the average inflation rate, extending back to World War II, is 3.6%. The authors of the whitepaper guide stress that consumers should monitor the situation closely and make portfolio adjustments should inflationary pressures continue later in the year. By having a defined and clear financial plan, consumers should be guided by their financial advisor to mitigate uncontrollable pressures.
Most retirees want to maintain their current lifestyle, and understandably, consumers want to meet their financial goals. With the advice provided by Fragasso Financial Advisors in this whitepaper guide, investors will be better prepared to have a discussion with their financial advisor about inflationary pressures should they continue. Fragasso Financial Advisors invites anyone who wants a better understanding of inflation and how it can impact their investment strategy to visit their website and schedule a complimentary consultation of their current investment strategy and financial plan. For those without a current plan or financial advisor, the same offer is extended.
About Fragasso Financial Advisors: Fragasso Financial Advisors, Inc. is an independent, employee-owned, primarily fee-based investment management and financial planning firm headquartered in Pittsburgh, PA. For more information on the series, visit https://www.fragassoadvisors.com/
Investment Advice offered by Investment Advisor Representatives through Fragasso Financial Advisors, a registered investment advisor.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.