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Prices are up, as well asinterest rateson credit cards and loans.
That has resulted in many families having a hard time making ends meet.
And according to a September 2024 article inThe Wall Street Journal, Wall Street is worried.
Stubborn High Prices
The good news is that inflation is now back in control.
Take the much-maligned price of a dozen eggs.
As of December of 2024, a dozen eggs were $4.15.
Wages went up fast during COVID, and it felt like the economy was on fire, he said.
It was the whole you make more, you spend more philosophy, Camberato said.
Unfortunately, inflation kicked in, hard.
Thats why defaults are rising.
People didnt plan for this kind of financial squeeze.
High Housing Costs
Another cost hammering Americans is housing, said Rose.
Home prices have risen sharply in the past five years.
Rose said that housing costs are adding pressure to household budgets.
Thats the highest its been since 1999, when they began tracking it.
In fact, according toDepositAccounts, Overall, balances are down … a lot.
Since 2019, the average household savings account balance nationwide has nosedived 32.5%.
Should Retirees Worry?
So be concerned and attentive, but not overly worried, said Camberato.
Dont panic, and dont attempt to time the market.
Timing the market almost never works, he said.
Retirees who makebig, emotional movesusually do more harm than good.
Diversifying provides some protection against whipsawing market moves, she said.
She also advised strengtheningliquid emergency fundsup to 12 months of living expenses and reassessing withdrawal rates.
Essentially, plan for the worst, hope for the best.
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