Wealth Planning Ahead of Inflation

It’s no secret that inflation is on the rise, impacting millions of Americans. Mix that in with ongoing tariffs, it’s a good time to assess if your current wealth plan is ready to tackle inflation. It’s important to note that a financial plan is never supposed to be stagnant, it’s supposed to change as your situation and the situation of the world shift. But anxiety around inflation is still very real, so how can we get ahead of it?

Portfolio Rebalancing

At Bulwark Capital Management, we use a cost, risk and growth decision-making process when developing investment plans in tandem with our clients’ risk tolerance, investment objectives, investment preferences, and time horizons. A strategic portfolio management approach helps our clients’ plans adapt to changing market conditions.

With inflation on the rise, you may want to look at further diversifying your portfolio, making sure the portfolio’s ratios of international stocks, large-cap and mid-cap, bonds, cash, and fixed options make sense in the current economic environment. Different asset classes have varying cycles of performance which can help address inflation headwinds. This is why we encourage our clients to keep a diverse portfolio. By investing in multiple classes, the overall investment returns can be more stable and less susceptible to adverse movements in any one class.

Personal Actions You Can Take

Additionally, to help make your dollar in your day-to-day life last longer, do a thorough review of your spending. This is the time to evaluate essential vs. discretionary expenses, for example, a mortgage versus a new car. This gives you a chance to identify unnecessary spending that you can cut back on. Most people are shocked by how much they were spending on things they did not need!

Some common expenses that are good to look at critically during this audit:

• Takeout & Dining – Frequent restaurant visits, coffee runs, food delivery, and takeout orders.
• Subscription Services – Streaming (Netflix, Hulu, HBO Max), music, gaming, news, and fitness apps.
• Retail & Impulse Shopping – Clothing, accessories, home décor, and non-essential purchases.
• Unused Memberships – Gym memberships, fitness classes, warehouse clubs, and subscription boxes.
• Premium TV Packages – Expensive cable or satellite plans with unnecessary channels.
• Frequent Travel – Weekend getaways, flights, hotels, and vacation entertainment costs.
• Luxury & Self-Care – Salon visits, spa treatments, manicures, and pedicures.
• High-End Brands – Designer clothing, accessories, and premium tech gadgets.
• Hobby Expenses – Collectibles, gaming, crafting supplies, and other leisure-related purchases.
• Tech Upgrades – Constantly replacing smartphones, tablets, and accessories with the latest models.
• Costly Entertainment – Concerts, sporting events, amusement parks, and other high-ticket experiences.

Also, see if you can negotiate on those essential bills. While many essential bills are a fixed amount, some can be adjusted or reduced. You may be able to lower expenses for service contracts like internet or insurance. You may also be able to lower your credit card rates. While there’s no guarantee, it never hurts to call a service representative and see if you can get a better price for the things you have to pay for.

While dealing with inflation is no investor’s dream, it doesn’t have to be a nightmare either. With a strategic approach and willingness to adapt your life and portfolio to market conditions, you can get through this time and on to the other side!

Do you need help getting your wealth plan inflation-ready? Call us today! You can reach Bulwark Capital Management in Tacoma, Washington at 253.509.0395.

 

 

This document is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions. It is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

Investment Advisory Services offered through Trek Financial LLC, an investment adviser registered with the Securities Exchange Commission. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein.

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