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True Wealth– Your Monthly Budget

Last month, I focused on inflation and its potential impact on your future financial plan. As we are experiencing rising prices (CPI-inflation), understanding their effect on our monthly budgets is another aspect to consider in your financial plan. Whether you are nearing ‘retirement’ or already have started your new journey, small adjustments in your plan can make a difference.

A walk down memory lane can help put things into perspective. The core inflation rate from 1965-1972 averaged 4 percent and from 1973 to 2021 averaged 3.85 percent. 1973, you may recall, was the year of long gas lines from expensive oil with an inflation rate of 8.71 percent, and the 1970s got worse before things got better. The numbers do not lie, and historically, inflation/ CPI has been low. A return to mean averages can only be achieved through higher-than-normal numbers. Action steps for inflation-testing your budget can help you be proactive versus reactive: 1. Apply a 6-8 percent annual rate to inflationsensitive items like food. If your monthly costs go up, where does the money come from?

2. Consider adding more dividend-oriented equities, to shift balance from longer-hold growth portfolio to value-oriented income generation.

3. If you have a company pension, confirm if it has a fixed rate or adjustment feature called COLA-cost of living adjustment. Then recheck what was used in your plan, for income. source may be the right move. The “start vs. wait” decision should have its own analysis before pulling that trigger.

Finally, how could these potential adjustments to your income affect your taxes? Consult with your CPA before implementing any major changes for clarity on potential tax consequences. While the great inflation debate continues, remember, long-term averages do a great job of softening the bad numbers and muting the good numbers whereas a shorter-term analysis may reveal a different outcome. As the age old saying goes, people do not plan to fail, they fail to plan. Turn a solid defense into a strong offense by making sure you have stress tested your plan against above-average inflation. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor, Member FINRA, SIPC.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor, Member FINRA, SIPC.

Jeffrey Karp, CLU®, ChFC®, CASL® founder of Karp Financial Strategies and is a registered representative of LPL Financial. More information and his blog, Permission GrantedSM can be found at www.karpfinancial.com.

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General & Family Dentistry Same Day Crowns | Cosmetic Dentistry Gold Plus Provider for Invisalign NEW PATIENTS WELCOME (704) 875- 1621 • SmileArchitects.com 131 Marguerite Lane, Huntersville, NC

protecting LKN Veterinarians includes BUSINESS INSURANCE»

As Veterinarians are medical doctors, you face many of the same risks and liabilities as any medical profession, making it necessary to purchase sufficient insurance to cover any losses and claims. Let us take this worry away from you so that you can focus on the care of the pets that have been placed in your hands. Here are two types of coverages we highly recommend Veterinarians have for their clinics:

PROFESSIONAL LIABILITY INSURANCE:

It can be easy to make mistakes around animals that are nervous, scared, or very ill. Professional Liability insurance can help cover you and your clinic by paying for damages and expenses that occur from error or mistake in your professional services. It can help cover claims of negligence, misrepresentation, inaccurate advice, and supposed mistakes. This coverage is also known as Errors and Omissions insurance (E&O).

EQUIPMENT COVERAGE:

Business equipment, including computers and specialized medical equipment, such as x-ray and ultrasound machines, used for your practice are costly and it is important to have this sophisticated equipment covered in the case of damage or loss where repairs or replacements are needed.

(704) 875-3060 foglegroup.com

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Donna Yost

Commercial Lines Manager

With 17 years of experience Donna has extensive knowledge in the field of Business Insurance.