Financial Advisor Gregory Ricks Explains How Gas Prices and Inflation Affect Retirement Planning
Financial Advisor Gregory Ricks discusses how higher gas prices and inflation will affect your retirement and income planning.
Metairie, LA – December 7, 2012 – Gregory Ricks, Founder and CEO of Gregory Ricks & Associates, a registered investment adviser, recently discussed how gas prices will affect your retirement planning and how inflation is a “stealth tax” waiting to happen.
“Gas prices affect us in many ways. The vast majority of what we eat and what we wear gets to stores by long haul truck delivery. For example, higher oil prices increase the production cost of fertilizers and food processing and these higher costs are passed on to consumers in the form of higher prices at the grocery store. As these cost increases ripple across multiple supply chains, they can push core inflation higher,” remarked Gregory Ricks.
The inflation rate in America is based on the Consumer Price Index (CPI) and is calculated by the government monitoring a “market basket of goods and services” to accurately index the cost increases we all deal with over time. The Bureau of Labor Statistics explains that the CPI represents all goods and services purchased for consumption by the reference population. These goods and services are broken into major categories such as Food/Beverages, Housing, Apparel, Transportation, Medical Care, Recreation, Education/Communication and others.
“The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance, since these items relate to savings and not to day-to-day consumption expenses,” explained Gregory Ricks. “I found that quite interesting, because it is blind to market pressures and it excludes taxes which we already know are going up, starting in 2013. So, my clients who are in retirement face an increase in their cost of living due to higher taxes, but there isn’t any relief for that cost.”
Gregory also offered three insights as to how this information informs the retirement-planning strategies for his clients. “First, taxes are undoubtedly going up. Second, regardless of economic maneuvers (what they call quantitative easing), what our clients buy is likely to get more expensive – even if the government’s ‘basket’ doesn’t want to own that reality. Finally, we keep a close eye on our income-planning strategies, so that the retirees who place trust in us can continue to live the lifestyle they earned.”
For more information on this topic, or to learn how Gregory Ricks can help, please visit www.gregoryricks.com.
About Gregory Ricks:
Founder & CEO, Gregory Ricks & Associates, Inc.
Gregory Ricks is the Founder and CEO of Gregory Ricks & Associates, Inc. and is the Radio Talk Show Host of “Winning at Life with Gregory Ricks,” on Rush Radio 99.5 WRNO on Saturday mornings. He is Louisiana’s 401k and Retirement Authority and author of the upcoming book, Winning at Life in Retirement, in which the emphasis is to avoid losing money to Wall Street, to avoid losing money to Uncle Sam and to protect assets from runaway health care costs late in life. He is a nationally sought after Wealth Manager, Tax Reduction Strategist and an Ed Slott Elite IRA Advisor who has been educating, advising and guiding clients for 28 years. He has a unique vision and ability to look forward and help retirees see the financial road ahead so they know with certainty where they are, where they’re headed and where they’ll end up at any given point in time up to 10, 15 or 20 years out including changes in direction. He does the math to ensure their monies are using the right tools and doing the right jobs for the right period of time so they win at life in retirement by enjoying the lifestyle they’re accustomed to without fear of running out of money.