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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2018

Keeping Up with Inflation

Keeping Up with Inflation

Safe can be risky when you don’t invest with a strategy that helps your portfolio potentially keep up with inflation. There are steps you can take, though, to possibly lessen some of the effects of inflation, wherever you are in your investing life.


Think Long Term
If you have 10 or more years until you intend to retire, understand that time can help you withstand investment volatility. In other words, a loss isn’t a loss until you redeem, for example, mutual fund* shares at a price below their original cost. And volatility, which almost all investments experience, is a normal part of investing. History shows that over time, stock prices rise and decline, like ocean waves hitting a shoreline.


Mix It Up
Another way to potentially dull the effects of inflation is by mixing up your investments via asset allocation.** Consider spreading your investments among stock, bond and money market mutual funds based on your goals, risk tolerance and time horizon.


Not only may asset classes perform differently, but certain types of investments within each asset class may also perform in a different way at the same time. For instance, international stocks may not perform the same as domestic stocks.


Treasuries
If you want guarantees, Treasury bonds, bills and notes offer them, backed by the full faith of the United States government. The catch is you must hold them until maturity, when they will pay the agreed-upon return.


Owning mutual funds that include Treasuries doesn’t offer the same guarantee as owning them outright, because fund managers often sell their holdings before maturity, when returns might be higher or lower than if held until maturity. Talk to your licensed financial professional to learn more.


* You should consider the fund’s investment objectives, charges, expenses and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.


**Asset allocation won’t guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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