Rising Inflation from Economic Recovery
As the economy reopens, inflation is surging quickly due to increased consumer appetite for goods and services, along with constrained supply for product inputs like computer chips and lumber. As this article notes, “shortages of new cars and trucks due to a shortage of computer chips, plus government stimulus checks, created a run on used vehicles, whose prices jumped 10%.” In addition to higher prices for consumers and businesses, inflation also means that the purchasing power of saved money held in cash is deteriorating at a faster pace, increasing the importance of strategic allocation of funds intended for inheritance planning and retirement income.
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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management