How Much Volatility Before Your Financial Goals Are Impacted?

Volatility is an unavoidable part of investing. One thing we know for sure with our investments is that nothing is static.

The amount of volatility experienced is the result of portfolio positioning, which can range, at a very basic level, from very aggressive to very conservative. The more aggressive you invest the more volatility you’ll experience over time and vice versa.

My question to you, today, is “Do you know how much volatility you can afford before you must reduce your spending or adjust other financial goals?”

If you, or your advisor, don’t know the answer to this question then how can you/he/she possibly know how to invest your portfolio? Continue reading “How Much Volatility Before Your Financial Goals Are Impacted?”

Inflation, Interest Rates, the Fed…What Does It All Mean?

“I would not be surprised to see inflation peak at around the current 8.5% level and begin rolling over in the latter part of the year.” – Ken Melotte, June 2022

There has been a lot of focus on inflation and interest rates lately, understandably. But I’m not sure how well people generally understand the mechanics of what’s happening, why, implications, etc… so figured I’d briefly address it.

The Federal Reserve (“The Fed”) controls/influences a couple critically important things: (1) the price of money and (2) the quantity of money. Continue reading “Inflation, Interest Rates, the Fed…What Does It All Mean?”