Rising Interest Rates and Inflation

What should you do amidst rising interest rates and inflation? Brian talks through what he tells his clients and how it impacts your financial plan.

Interest rates are going up! So, what should you do when it comes to your retirement plan? Brian says you’ve got to understand volatility: everyone loves when it’s going up. If you have a high-risk score you may be changing your tune once the risk goes up. After years of the market mostly moving up, you may be feeling the pain of the last few months.

When you do a risk assessment to find out your risk score, you may be surprised to understand what your real risk tolerance is. Are you okay with losing 40 percent of your savings? If not, your risk tolerance may be lower. What will you do if the market drops? You’ve got to be patient.

If there’s a bear market or a market correction, how will you feel? People are investing in real estate now since it’s been going up while the stock market is not. With interest rates going up, that may slow it down. You’ll want to discuss your timeline of when you need your money to determine where it should go. The biggest example of soaring prices right now is the cost of gas and the impact is being felt across the board. How is Brian helping clients handle this uncertainty in retirement? It might not show up on your investable statements, but it does cause you to cut back on other things you don’t need and make different financial decisions.

Listen to the entire episode or skip ahead using the timestamps below.

Honest Takes:

[0:13] What’s your real risk score?

[5:22] Why are people interested in real estate right now?

[8:05]Inflation continues to go up.

Today’s Truth:

“You’ve got to understand volatility: everybody loves when it’s going up. Don’t we?”

Brian Bowen


The Host:

Brian Bowen – Contact