Key Takeaways:
1. Inflation is cumulative, not just year-by-year; it builds up over time affecting the cost of goods and services.
2. The rate of inflation can vary each year, but even when it decreases, it typically does not negate the previous years' increases.
3. Using a spreadsheet to track the cost of an item over time can visually illustrate how inflation compounds.
4. Despite occasional dips in the inflation rate, such as in 2009, the overall trend over a long period is an increase in costs, as shown by the example of an item costing $100 in 1978 rising to $448 in 2022 due to inflation.
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#fiduciary #financialplanner #financialplanning
Mullooly Asset Management is a fee-only investment advisory firm located in Monmouth County, NJ. We work to educate our clients regarding managing the risk in their investments. We act in a fiduciary capacity with our clients at all times.
Our family of investments advisors (Tom, and his three sons - Brendan, Tim and Casey) are all CFP® Professionals.
To our knowledge, WE ARE THE ONLY FAMILY firm - in the nation - with four fiduciary, fee-only investment advisors who all have earned CERTIFIED FINANCIAL PLANNER™ certification.
Tom Mullooly is an investment industry veteran of over 35+ years. The "Mullooly Asset Show," has over 350 episodes and over 450 unique podcasts, which can be found on the site https://www.mullooly.net.
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