Money Talks

11/10/2021

Money Talks: Inflation Blog

https://newper.blogspot.com/2021/11/chicken-little.htmlMoney Talks expert hosts are Chartered Financial Analysts from New Perspectives. Their firm has researched additional information about inflation in 2021. Please read their post here. Money Talks can be heard live on MPB Think Radio Tuesdays at 9am. Or listen to the podcast. moneytalks.mpbonline.org is our website. Email your questions: money@mpbonoine.orgChicken LittleThe sky is falling! The sky is falling!Or is it?We just got the latest numbers on inflation. The data show that inflation increased 6.2% for the 12 month period ending in October of this year. That’s WAY beyond the historical average of 3% annually and stirred up the inflation ghosts of the 80s.While we take inflation pressures seriously, we find there are some mitigating factors here and some variables that mean these numbers will moderate.First, this is being measured against the twelve months ending in October, 2020, when we were, mostly, in pandemic mode. Much of the twelve months from November, 2019, through October, 2020, were spent in full or partial lockdown. That means we are measuring from a low point. The previous inflation rate for that period is 1.2%, much lower than the historical average.And what determines prices? Supply and demand. And we have some weird things going on for both sides of the equation.On the supply side, we our seriously bogged down. Factories are trying to gear back up to full steam. Ships are backed up at ports. There are not enough drivers to deliver goods. There is a multitude of variables contributing to the mess, but it’s not permanent. Gradually, we will seethe chain unkink, but, right now, inventory levels are low. Want the hottest Christmas toy? You’re going to pay big bucks.And what of the demand side? We’ve all been hunkered down, spending less and accumulating more. As my mother used to say, “The money is burning a hole in our pockets.” And we’re not just buying stuff. Now, we are buying experiences—booking travel like there’s no tomorrow.More people chasing fewer goods/services. It’s a recipe for classic inflation. But will we keep spending like drunken sailors? Probably not. Things will slow down. We’ll get it all out of our system and settle back into normal patterns.And what about the biggest cost of business? Labor. Well, we are waiting to see how this pans out. Yes, the labor market is tight, and wages are increasing. Will they stick? In some cases, yes. In areas with a lot of turnover, maybe not.Ultimately, we believe prices will moderate, but don’t expect to go all the way back down to earth. For the last decade, inflation has been in the 2% range or less. We expect it to go above historical levels in the next year or two and hover in the mid 3% range. That’s highER inflation but not HYPER inflation.So, when it comes to inflation, it’s a little cloudy, but we don’t think the sky is falling.
11/2/2021

Money Talks: Open Topic Nov 2021

Money Talks loves bringing in expert guests to bring you a variety of topics but sometimes we just sit back and encourage you to call in about anything you’d like to discuss when it comes to your personal finance. We do have a selection of stories that have been in the news to discuss between your questions.Discussion:"Stay the course" - S & P up this yearMeta -verseOn April 13th, 2021 Money Talks hosted Executive Director for Mississippi Home Corporation, Scott Spivey. We learned about the Rental Assistance For Mississippians Program known as RAMP. You can find our podcast from April 13th 2021 for additional information. http://moneytalks.mpbonline.org/episodes/money-talks-ms-home-corphttps://ms-ramp.com/NPR recently reported that a California man in 2014 bought a season pass at Six Flags for $150 that included two meals a day. He has eaten nearly every meal at Six Flags over the last 6 years.He says with all his savings, he paid off his student loans and bought a house.https://www.npr.org/2021/10/26/1049222059/california-man-has-eaten-nearly-every-meal-at-six-flags-over-the-last-6-yearsThe head of the office of Federal Student Aid told lawmakers that his agency is preparing for federal student loan repayments to resume early next year. https://www.npr.org/2021/10/28/1050110273/4-things-to-know-about-possible-changes-to-your-student-loan-debtIf you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program. https://studentaid.gov/manage-loans/forgiveness-cancellation/public-serviceAccording to various websites, here are recommendationsOn what TO buy in November: Smart home devices, Cookware and small kitchen appliances, Smartwatches and wearables, Smartphones, wine, baking ingredients, travel - other than Thanksgiving, tools, and cookwareHere’s what NOT TO buy in November:Doorbuster TVs – wait to buy before the Superbowl, Ultra-low-price laptops (There is disagreement about these items. Some say the electronics offered aren’t the best quality.) Jewelry, Holiday merchandise – buy after Christmas, A new car – there’s a tight supply due to chip shortage, Large appliances and mattresses – buy these Independence Day, Labor Day and Memorial Day sales.Mississippians enrolled in the Supplemental Nutrition Assistance Program are eligible for a supplemental benefit in November. Similar benefits were offered over the previous months to assist certified SNAP households during the pandemic, Mississippi Department of Human Services officials said last week. Check for eligibility for SNAP benefits https://www.mdhs.ms.gov/economic-assistance/snap/Calls:debt ceilingmeta moneyIRAs and Roth IRAs