Rising Inflation, New Legislation, and Your Financial Plan in 2022
The final Truepoint Talks of 2021 was held on December 8, 2021. For this special year-end edition, we hosted a roundtable of Truepoint specialists to tackle the questions on clients’ minds. Some of the questions submitted include the following:
- How will persistent inflation affect my portfolios and Truepoint’s investment strategy?
- What is the impact of inflation on the financial plan, including any adjustments to withdrawal rates for retirees?
- What are the big tax changes we might expect to see in 2022?
- Are there any tax law changes that we should take into consideration for year-end planning?
- What’s Truepoint’s current thinking on cryptocurrencies?
- Where do annuities and real estate have a place in my financial plan?
The full recording can be viewed below:
Market risk vs. inflation risk
“[Inflation] is one of the primary reasons we invest in the first place…there’s a really strong trade-off that one has to consider between market risk and inflation risk. If one chooses to have a more conservative portfolio, from the standpoint of owning more bonds and assuming less market risk, in effect they are taking on a little bit more inflation risk.”
Scott Keller, CFA
Building a financial plan
There’s no one-size-fits-all solution for every client. Put simply, I think the magic of the planning that we do for clients marries together all of the things we can’t control—all of these major unknown factors—with the things we can control together.
Courtney Weber, CPA, CFP®
Smart estate and tax planning
Our technical advice is a function of your goals, how you want to live your life, and what you and your family want to achieve. Are there other goals? Do you want to live near your kids? Do you want to live near your grandkids? All of those things are not only important from a financial planning perspective, but they help inform us on the tax and estate planning side.
John Wolfenden, JD
The importance of knowing all the details
There’s no judgment here…there shouldn’t really be anything you should be worried about in terms of sharing because we’ve probably seen it all. Our goal is to serve. The better we know your financial picture, the better we can serve. It’s really just about helping each and every client be as successful as possible.
Ginger Ittenbach, CPA
Bringing all the pieces together
Our team loves the challenge of figuring out the puzzle by taking all of the pieces and putting them together in a way that serves our clients the most. But the overriding fulfillment comes from putting that puzzle together in a way that helps the client achieve those life goals.”
Steve Condon, CFA
Tuning out the noise
In this moment, when there are a lot of scary headlines out there…we’re really well-positioned to handle all of this. So, knee-jerk reactions of any kind are never our recommendation. We wouldn’t want people to make any spending decisions based around these headline numbers.
Nate Johnson, CFP®
