facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Inflation Is Creeping into Personal Finances - Here's How Thumbnail

Inflation Is Creeping into Personal Finances - Here's How

If you have a balance on a credit card or an adjustable rate mortgage, you might be noticing changes in your payments. Higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon. 

The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at its highest level in 40 years. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll notice it if you are shopping for a new or used car.

The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.

Inflation has taken a toll on the U.S's economy, but will the Fed be able to bring things back?


Time will tell whether higher interest rates will prompt us to consider changes to your portfolio. Remember, your overall strategy considers that there will be transition periods in the economy.

In the meantime, you may want to look at I Bonds, which are issued by the U.S. government and earn a fixed interest rate plus a variable interest inflation rate that’s adjusted twice a year. I Bonds have certain purchase limits, restrictions, and tax treatments, so they generally play a limited role in your financial picture. 

For more information regarding inflation that effects personal finances, such as shelter inflation, watch this video by Rodney Johnson of The Rodney Johnson Report

If you have any questions about inflation or interest rates, please reach out. Our advisors here at CRA will ensure that you are well informed about inflation and its effects on personal finance, as well as crafting a well-developed plan to allow you to live worry-free during retirement.

By Christian Cordoba
Founder, California Retirement Advisors

For more information on taxes and the economy, check out these other CRA articles:

Looking to Reduce Your Carbon Footprint? This E-bike Tax Credit Will Reward You! — California Retirement Advisors (cradvisors.com)

Tax Credit and Tax Deduction - What's The Difference? — California Retirement Advisors (cradvisors.com)

The Invasion Of Ukraine Has Created Market Volatility - Here's How To Stay Focused On Your Financial Goals! — California Retirement Advisors (cradvisors.com)

The Stock Market and the Economy Are Not the Same: A Guide to Understanding the Difference — California Retirement Advisors (cradvisors.com)

American Credit Card Usage Has Gone Up - What Does This Mean? — California Retirement Advisors (cradvisors.com)

Investment advisory services offered through Mutual Advisors, LLC DBA California Retirement Advisors, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. CA Insurance license #0B09076. This content is developed from sources believed to be providing accurate information and provided by California Retirement Advisors. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. California Retirement Advisors, nor any of its members, are tax accountants or legal attorneys and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.