Why Organization Is So Prudent In Your Financial Life 

Do you have questions about the markets and skyrocketing inflation? Well, we’re here to break it down for you. We have officially entered a bear market in the S&P500. The markets have gone down 8.9% in the last three days, which is a historic figure. Friday’s consumer price index (CPI) report revealed that inflation was not as contained as investors had thought, leading to huge spikes in Treasury Yields, with the 10-year Treasury note up to 3.44%, hitting its highest level since 2011. The 2-year yield to 3.42%, and the 2- and 10-year yield inverted for the first time in quite some time. We also saw massive increases in mortgage rates. We will continue to monitor and ultimately see how these increases in rates will impact the consumer and the housing market, along with the dollar hitting 20-year highs. 

Due to the 4-decade high inflation numbers, all eyes are now on the Federal Reserve meeting tomorrow where they now anticipate to raise rates by 0.75%, the biggest rate hike in 28 years. Previously, Fed Chair Jerome Powell said that a 0.75% raise is off the table but with the CPI report from Friday, things seem to have changed. 

So, given this uncertain economic climate we are in, we want to make sure we discuss the timeliness of establishing a financial plan and getting organized. We wrote a recent blog that uncovered that many Americans do not have any sort of financial plan, which is worrisome during this time. For those of you who may be panicking about the market declines and volatility, along with the rapidly rising cost of living, you should consider re-visiting your financial plan as a whole, re-thinking your budget, asset allocation, cash flows, and overall goals. Whether you have a financial plan or not, it’s never a bad time to get started or updated to make sure you are on the right path and headed in the best direction. 

Have you automated your finances yet? With the great technology we have today, it’s so easy to aggregate your finances all in one place, so you have access to it at all times. Taking a look at everything you have and seeing the bigger picture will help you make smarter financial choices in uncertain times or economic downturns. At Sherman Wealth, we utilize state-of-the-art financial planning software that allows you to see your whole financial picture at your fingertips. If you would like to trial our financial software, email us at info@shermanwealth.com and we are happy to help.

We believe it’s important for all individuals to have a financial roadmap that will help them navigate murky waters as well as ride out the high times in order to achieve long-term financial success. We know that economic uncertainties in the market can be stressful, so we are here to help you through it. We will be following rates for you after tomorrow’s Fed meeting along with this hot inflation data. Stay tuned for more updates and let us know how we can help you with your personal financial situation. Email us at info@shermanwealth.com if you have any questions or schedule a 30-minute complimentary intro call here

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