Tackling inflation and rising interest rates with a local financial expert

ALBUQUERQUE, N.M. — We don’t need to tell you: The prices of goods have risen and continue to remain high as inflation impacts the U.S.

So what does this all mean for your finances? David Hicks, of Oakmont Advisory Group, says your saving accounts and CD will become positively impacted as banks will soon pay more interest on deposits. However, your stock portfolio may be taking a hit.

As interest rates rise to combat inflation, you may feel an extra pinch. Hicks recommended some actions you can take as a remedy:

Examine your budget

“Easiest thing you can do is get a piece of paper, draw a line down the middle and look at necessary expenses on one side, discretionary on another and try to cut those things you don’t need by 5-10%,” Hicks said. “Also look at apps and different memberships to try and save money on gas, look at negotiating your cell phone or Internet bill.

Review portfolio risk

“This is a great time to see if you’re taking on too much risk, consider some of your underperforming stocks and offset it with your better performers,” Hicks said, “and look at converting your IRA to a Roth. This is a great time to do that as the market is down but the market will come back and you can get some of that money back tax-free.”

Consider alternate investment options

“Especially if you’re nearing retirement, consider things that are off-market that give you protection but also growth. Everyone should also look at Series-I savings bonds, which are yielding around 9.62% right now – and it is one of the best things anyone can do,” Hicks stated.

Hicks also recommended reaching out for help to get a second look at your finances, such as from a trusted family member or an advisor who can help you navigate.

Click below to view Danielle Todesco’s full interview with David Hicks.

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