As we approach the mid-point of the year, one of the biggest topics we’re hearing about as it relates to retirement income planning is inflation. With spending going up and more government proposals on the table, people have been wondering about how much inflation could increase in the coming years.
So that’s where we want to start on this episode of the Money Wisdom podcast. The hyperinflation mode of the 70s and 80s isn’t likely on the table, but there’s always some concern when interest rates are going up and the economy is overheating. When these things happen too quickly, prices go up and it causes the dollar to have lower purchasing power.
We’ve had very low inflation for some time so it wouldn’t be the worst thing if it settled back in around two percent. So you should be planning for inflation as part of your investment strategy if you haven’t yet.
The other discussion we wanted to have on the show today stems from a question we got recently. This person is close to retirement and wanted to know if they would be better off selling the building they own and investing the cash or if would it make more financial sense to sell the chiropractic practice they own and rent the building to the new owner.
There are a few things to consider with this scenario, but you have to think about these two things as separate businesses. Now, Joel admittedly doesn’t know much about the chiropractic business so it’s hard to speculate on that side, but he does have a good understanding of real estate.
The key to owning real estate is can you find a tenant that is stable and that can pay you a cash flow that makes it worth it. A million-dollar property netting you $30,000 each year (a three percent return) is an investment that could likely do better elsewhere. But if it’s a $250,000 property that generates $40,000 every year, then that’s a great asset to hold onto.
So, it’s a real individual decision as to which path you want to take but having a plan for which is key. During this discussion, Joel also explains why he decided against owning the property where he has his office. That should give you an idea of what other factors go into the decision.
0:28 – Should we be worried about inflation?
4:09 – Marijuana legalization and dogs
6:20 – Mailbag question on small business owner retirement
8:55 – Why Joel doesn’t own his office
“We always felt our financial needs were in very capable hands. Alex Angst is great to work with. Our advisor always made us feel he had our best interests at heart and explained things so we could understand them.”
“Working with Johnson Brunetti has had a positive impact on my life by providing me with the knowledge, confidence, and peace of mind to move forward with my retirement plans. The process of getting to this point, through their guidance, has been informative and pleasurable.”
“I view your company as one that puts my interests first. I think that is very uncommon and very refreshing. “
“Matt does an awesome job! So easy to understand and he listens to our concerns and addresses them! happy I chose your firm!”
“I have been pleased with the help and service I have received from the company. I have met several team members on Eric’s team and have found all of them very well prepared to meet with me when reviewing my portfolio. I always feel that I am an important customer and appreciate that very much. I hope the firm continues to focus on the customer and maintains its great service. I think you do a great job for someone like me!!!! I’m happy I chose your firm!”
Investment Advisory Services offered through JB Capital, LLC.
Insurance Products offered through JN Financial, LLC.
Atlanta • Boston • Hartford | Tel: 800-208-7233
JB Capital LLC is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. Information presented is for educational purposes only and is not intended as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.
Johnson Brunetti is a sponsor of WFSB Better Money, WCVB Better Money Boston, WSB-TV Better Money Atlanta, WTNH Money Wisdom, and WTIC Money Wisdom.