Inflation: Wall Street Financial

Inflation: Wall Street Financial


Only at Steak ‘n Shake. Heather: THE POWER OF THE DOLLAR SEEMS TO BE SHRINKING. BUT IS THAT REALLY THE CASE? Tim: HERE WITH A CLOSER LOOK AT INFLATION, TODAY’S YOUR DIME SPONSOR, WALL STREET FINANCIAL GROUP. WE HAVE CHIEF RETIREMENT STRATEGIST AND FOUNDER ZACH GRAY, ALONG WITH DUKE SMITH, JOINING US WITH MORE INFORMATION, TALKING INFLATION, I’M ASSUMING IT’S NOT BALLOONS AND BOUNCE HOUSES. [LAUGHTER] Heather: THAT’S MY KIND OF INFLATION. Guest: NO HELIUM TANKS HERE. EXACTLY. Tim: HOW DOES THIS AFFECT US? HOW DOES INFLATION MAKE OUR LIVES BETTER OR WORSE AS WE GO YEAR BY YEAR? Guest: WELL, YOU KNOW, IT COMES DOWN TO SPENDING AND LIVING THE LIFE WE WANT TO LIVE. AND LOOK TO GO SAY HOW DOES THAT LOOK NOT FOR NOW? BUT MAYBE 5-30 YEARS FROM NOW. THAT’S WHAT RETIREMENT IS ABOUT, RIGHT? WE HAVE TO GET THAT PLAN PUT TOGETHER, SO WE CAN JUSTIFY WHAT AMOUNT OF MONEY WE’RE GOING TO NEED INTO OUR POCKETS TO SPEND. Heather: LET’S REALLY BREAK IT DOWN HERE AND DEFINE WHAT EXACTLY INFLATION MEANS. FOR THOSE PEOPLE WHO MAY BE LIKE, WHAT IS THAT AGAIN? Guest: THE BEST WAY TO GO ABOUT THAT, HEATHER, WHAT IS THE FIRST CAR YOU EVER DROVE? Heather: A CHEVY LUMINA. Guest: WHOO! Tim: A CHEVY LUMINA. Heather: BE QUIET. Tim: FIGHTING THE BOYS OFF IN THAT THING. Guest: WHAT YEAR IS THAT LOVELY LUXURY LUMINA? Heather: PROBABLY ’95. Guest: WHAT DO YOU THINK A ’95 WOULD HAVE RAN YOU BRAND-NEW OFF THE SHOWROOM FLOOR? Heather: WELL, IT WAS NOT BRAND-NEW. Guest: TRUE. LET’S IMAGINE. Heather: LET’S SAY MAYBE $15,000? I DON’T KNOW. I DON’T KNOW CARS. WELL, HONESTLY, YOU’RE PROBABLY RIGHT. Tim: PRETTY CLOSE. Guest: IT’S PRETTY CLOSE. YOU PROBABLY COULD HAVE BOUGHT THAT CAR FOR $12,000, $15,000, MAYBE $20,000 AT THE MOST. I’M NOT ALSO A CAR BUFF HERE. WHAT I’M SAYING IS, IS THAT WHILE THAT WOULD BE A VERY NICE CAR, I WILL SAY WE CAN HARDLY BUY ANY CAR FOR $15,000 ANYMORE. Heather: TRUE. Guest: I JUST WENT AND BOUGHT A GOLF CART FOR MY LITTLE GIRLS TO TAKE RIDES WITH AT THE HOME PLACE. AND YOU KNOW, THEM THINGS ARE $5,000 TO $10,000. MY POINT HERE, IS NONETHELESS TO SAY, IF WE WENT TO THE CHEVY DEALERSHIP, AND THEY DON’T HAVE CHEVY LUMINAS ANYMORE… Heather: THAT’S WHY IT’S PRICELESS. Tim: WITH AN EIGHT TRACK PLAYER. Heather: IT DID HAVE A CASSETTE. Guest: EXACTLY. THAT BEING SAID, WHERE I’M GOING WITH THIS, IF YOU THINK ABOUT THE NEW CAR PRICE BACK THEN, WHAT IS THAT BUYING POWER OF OUR DOLLAR? WHAT DOES THAT LOOK LIKE AS WE SCOOT A FEW MORE YEARS DOWN THE ROAD AND WE LOOK TO SAY OKAY. NOW THAT WE’RE A FEW YEARS FROM 95 AND LOOK TO BE HERE IN 2019, BUYING A GRAND NEW VEHICLE IS GOING TO BE COSTING MORE. IT’S THE SAME WAY WITH LIFESTYLE. Tim: INFLATION ISN’T A BAD THING, BUT WHEN YOU’RE PLANNING, YOU CAN’T SAY THE $3,000 OR $5,000 A MONTH OR WHATEVER IT IS I NEED NOW IS WHAT IT IS GOING TO BE IN 20 YEARS. Guest: EXACTLY. WHEN WE BUILT THE PLANS, AND DUKE, YOU WANT TO TOUCH ON THAT, IT’S IMPORTANT TO LOOK BACK AND SAY TO YOUR POINT, WHAT IS IT GOING TO BE TO HAVE $5,000 A MONTH NOW, HOW DOES THAT LOOK YEARS DOWN THE LINE? WHEN WE THINK ABOUT HISTORICAL INFLATION IT’S THE 3%. SO IF WE’RE NOT GETTING 3%, WE’RE NOT RIGHT WITH INFLATION. Tim: THE HOUSING MARKET, WHAT IT’S GOING TO TAKE TO FIND A PLACE TO LIVE? OR ARE WE TAKING AN AVERAGE OF THAT PLUS VEHICLES PLUS FOOD, HEALTH INSURANCE, ET CETERA? Guest: WHAT WE’RE TYPICALLY DOING IS ASKING FOLKS, WHAT DOES IT TAKE FOR THAT MONEY IN YOUR WALLET OR YOUR PURSE? THAT SPENDABLE CASH, WHAT IS IT GOING TO TAKE TO MAKE THE WHEELS TURN DOWN THE TRACK? WHAT IS IT GOING TO TAKE TO LIVE YOUR LIFE, HOUSING, UPDATING THE CARS, TAKING THE GRANDKIDS ON TRIPS. IT’S MAKING SURE YOUR GOLDEN YEARS ARE TRULY GOLDEN YEARS AND MAKING THE MOST OF IT. ONCE AGAIN, WE HAVE TO MAKE SURE THE MONEY IS GOING TO LAST. AND WE HAVE TO MAKE SURE WE CAN AFFORD THOSE THINGS INTO THE FUTURE WITH INFLATION THE WAY IT IS. Tim: WHAT WE WANT BRONZE YEARS IS THERE A WAY TO DIAL IT BACK A LITTLE? Guest: YOU KNOW, I WOULDN’T SUGGEST THAT. [LAUGHTER] Guest: IF YOU WANT TO GO FOR THE BRONZE OR SILVER, THAT’S FINE. Tim: I AM TRYING TO BE CREATIVE. Heather: WE HAVE A GRAPH I WANT TO MENTION. IT EXPLAINS WHAT, EXACTLY? WHAT ARE WE LOOKING AT? Guest: THIS IS A GRAPH OF WHAT INFLATION HAS LOOKED LIKE OVER THE LAST SEVERAL YEARS. AND IF WE AVERAGE OUT ALL THOSE NUMBERS, IT DOES RUN NORTH OF 3%. Tim: GOT IT. THOSE RED YEARS LOOK ROUGH. Guest: YEP. Tim: THEN, THERE’S GREEN THAT LOOKS REALLY GREAT. SO THE AVERAGE, COMES OUT ALL RIGHT. Guest: YOU HAVE TO KEEP IN MIND, ITS NOT A GOOD OR BAD. WE HAVE TO LOOK AT WHAT DO WE HAVE TO PLAN FOR TO MAKE SURE WE’LL LIVE THE LIFE WE WANT TO LIVE. EVERY TIME I GO TO THE STORE, SEEMS ARE MORE EXPENSIVE. OR MANY TIMES GETTING FUEL INTO THE CAR, WHATEVER THAT CASE MIGHT BE, WE HAVE TO MAKE SURE WE’RE PLANNING FOR THAT LONG-TERM. SO MANY PEOPLE FOCUS ON HERE AND NOW. AND THEY SAY IT’S GOING TO TAKE THIS MUCH MONEY. AND I HAVE THAT COMING FROM MAYBE SOCIAL SECURITY OR PENSION. IF THEY DON’T HAVE COST OF LIVING OR PENSION OR IF THAT’S LOW WHEN IT COMES TO SOCIAL SECURITY, WHICH IT IS, WE HAVE TO PLAN FOR HOW ARE WE GOING TO MAKE UP FOR THAT? AND BACK TO THE LUMINA, HOW WE PLAN FOR THE COST DOWN THE LINE. Tim: GOT IT. Heather: WALL STREET FINANCIAL GROUP. WE’LL CONNECT YOU. THERE’S A LOOK — OH, I THOUGHT WE HAD THEIR WEBSITE. WE WILL. THERE IT IS. WE WILL CONNECT YOU TO THE RETIREMENT ROAD MAP AND EVERYTHING YOU NEED TO KNOW ABOUT INFLATION AND HOW SO SAVE

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