Michael A. Milazzo, CLU, ChFC

Registered Principal

The Meridian Financial Company

90 Lawrence Avenue, Suite 4, Smithtown, NY 11787

Phone:  631-979-4223

Fax: 631-656-8199 

Email: meridian@ae.cadaretgrant.com

Website: www.merfinco.com

July/August 2018

Keeping Up with Inflation

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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.

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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Michael A. Milazzo is a Registered Representative of and offers securities through Cadaret, Grant & Co, Inc, a member of FINRA and SIPC. The Meridian Financial Company and Cadaret, Grant are separate entities. I am registered to sell Securities in the following States: NY, PA, NC, FL, CO, ID.
The Meridian Financial Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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