Inflation or Deflation that is the Question

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about the affects of inflation on your life and your portfolio. Inflation is basically when prices rise. What we're experiencing in the US is bad, but not as bad as it could be. What about deflation and how this isn't being talked about. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert and number one Amazon bestselling author, John Browning. John is the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael Delon, your host for the next few minutes as we chat with financial expert and business owner John Browning. Hello, John Browning, how are you today? Sir? I'm fantastic. It would be hard to imagine being quite any better. That is awesome. I don't hear that very often, so I will take that. I used to hear people say I'm better than a one armed paper hanger or no, I'm busier than one paper...

Um, you gotta think about that for a second. Yeah, I had to think about them. All right, we'll keep going. Speaking of thinking about things, I don't know when in school did you ever have to like read Shakespeare or anything. I skipped those classes because I think so. I think I had to read, I had to do a couple of those. It was that then followed by like pride and prejudice with you know others, and so I skipped all those. But Shakespeare had that. Probably has many quotes, but he has that one quotes that it is like to be or not to be, thought is the question right. It's about that. Only Shakespeare. I know, terrible. Sorry, you've got a question here that we want to talk to people about and share. Um, it's not about to be or not to be, it's it's inflation or deflation. That is the question. So right now we're very it's very interests on a lot of people's minds of what's going on with inflation. Gas prices are going up, milk prices going up, everything is going up. Let's talk about inflation and deflation. Okay, yeah, absolutely, and it's on people's minds because the things that we use every single day, like food, gas for our cars,...

...rent, those are the things that are really inflationary. Now, I did have somebody say to me that, well, most people don't know what inflation is, so let's just address that real quick. Inflation is when prices rise, bottom line. So you have some countries. People think it's bad in the United States, but take a country like Turkey. In the country of Turkey, this year their inflation rate is running about seventy wow. So Venezuela has experienced hyper inflation, which is, you know, in the hundreds of percentage points in a given year. So here in the United States we complain and and it is very painful, but it's not as bad as many of the places around the globe. So that's the positive side of things, right. But we we often hear about this inflation and and what's going on...

...right now is the things that we use every day are going up in price. Eight point eight six percent, I think, was the latest that it was through through, I think June, and we're looking as though we could see inflation double digits for this year and last year wasn't far off that as well. So what that means is that the lower level and mid mid level income earners are getting hurt the work worst because they spend a disproportional amount of their income on those essentials like food and that type of thing. But it's interesting to consider some of the deflationary things that I don't see being talked about anywhere, and those are the things like artificial intelligence. And you hear me, you've heard me talk before about the five pillars of innovation and everything like that. Right. So, if you look at things like artificial intelligence and...

...you look at things like self driving cars and things like that, but these are all things that what the arguably the upper class, are going to utilize, at least for the near near future. That's going to be the case. But those things are actually bringing down the cost of manufacturing. They're bringing down the cost that my commute takes me if I'm going to if I still drive to work, now I don't have to drive my car. I can work in the car, I can have some entertainment in the car, things like that. Some of those things are deflationary. Ai Artificial intelligence is also bringing down the cost of some types some types of healthcare. M Hm, love it, hate it. I don't want to talk about the political aspects of it it, but the whole covid nineteen uh, the inoculations that they...

...created in such a short period of time would not have been possible without the aid and assistance of artificial intelligence, those costs were brought down. That's actually the inflation are so what I call the C P I. Have you ever heard of that? Um, no, I probably have. I just don't know what it it fell in there, and this in the right after Shakespeare and and so I probably skipped that class. to C P CPI sounds like a computer thing. So that's what the government says is the definition of inflation. So the Consumer Price Index, and that there's a basket of goods and services that we all supposedly use and roughly the same proportions. I could actually call it the confusion price index's because there's a lot of confusion on that. And just to give you one example, I'll tell you story. Okay,...

...if I tell a story, absolutely. So, during the Obama Administration. Again, this is not a political commentary, nor is it investment advice, by the way, but during the Obama Administration you started to see this happen where you would go and you got that. You remember when it was like half a gallon of ice cream? Yeah, is it still a half a gallon of ice cream? Yeah, no, I don't think so. They started shrinking the packaging. So in the Consumer Price Index, which is which determines whether or not there is or is not inflation. It's still just said the package of ice cream. Okay. So, miraculously, the CPI during the Obama Administration was very flat. The reason that's good for the government is guess what is determined by CP I? Social Security goes up with CP I. His ability coming from the government goes up with CP I. Didn't have...

...to do any of that and that went up during that time. Well, if you're really interested, go to the store now and you'll see that that half gallon of ice cream, which already shrunk, just shrunk again. And if you look at like, say, a package of hot dogs, used to be to get a package of eight now typically, and then it went to you know, you got a package of six. Now it's five in many cases. Well, that's true, but the price stays the same or actually, right now has still gone up. So you're paying about more for about less. Yeah, that's interesting. So the average American that isn't quite as crazy as I am and pays attention to this kind of stuff really kind of doesn't tend to notice. They noticed the price increase, but they don't notice the amountain decrease. I noticed the amountain decrease when I pulled out a thing Oreos, and the OREO is smaller. It's the size of a nickel...

...an now instead of a quarter. It was like, well, well, what, what? What happened here? That's exactly what you're talking about. That's interesting. Okay, yeah, another sneaky one that's kind of fun to talk about is that her she's kisses, which haven't necessarily gone up in price with the manufacturing process, now includes an air pocket right in the center, so ever so slightly less chocolate. Yeah, that's like biting into an Easter Bunny, chocolate Easter bunny that you think is solid and it's hollow, and I mean, oh that's sad. It is, but it's almost interceptible on those here she kisses, so nobody really notices. But it saves the company. Even you figure out how many millions of those are creative, it saves a company quite a bit of money. That's amazing. One Who came up with that idea some business account somewhere. Yeah, so at the end of the day, inflation can hurt us, but deflation can help us and hurt...

...us. That's interesting. It depends on what your inflation number is, not just now, but when you're planning for retirement. What is your retirement inflation rate? M So how do you plan for your best life, not just now but later in retirement, and your inflation rate, based on what you utilize the different stages of life, is actually quite different. That's one of the things that we do at Guardian Rock is we help you plan and think about those things. How are your expenses going to change? How is inflation or deflation likely to impact you as you get a little bit older and as your needs change and as your wants change? Yeah, wow, that's crazy, because really what you're talking about is is we get so hung up on watching the CPI, let's say, or whatever, and we're focused on the portfolio, what it's doing to our portfolio, which is important, but your...

...whole concept, John, is to build a life, not just a portfolio. So working with you and Guardian Rockwell, you're the expert who who can, who can work all these all this magic per se or understand it. Also that your clients can still enjoy life because you're able to, oh, dare I say, mitigate some of these things, because just of I mean you're an expert at all this stuff. Right. So it's it's important for people to have conversations with you, to talk with you too, because did you know more about inflation and deflation and all of this stuff than most of it? You've forgotten more than most of us will ever know, right, Um, you're like an expert in Shakespeare. You could write a play, UM, expert. And Yeah, there you financial Shakespeare, financial Um. Anyway, it's just don't get. I guess what I want to say is is to audience. Don't get so focused on the portfolio ups and downs inflation...

...that you forget about your life, because it really is about living life that you want to live now and in the future. And and these are cyclical thing. Nature's right. INFLATION IS gonna go up, it's gonna come down. Texas go up, they'll come down. It's how do you manage your life and build the portfolio now and in the future? That's what John and his team do at Guardian Rockwell, so, um, that's that's fascinating. I never thought about inflation and deflation quite that way. U Um, next time, I I guess next time I get a package of Oreos, I'm gonna have to really look at it and tell my wife to go to the store and get what is it now? A quarter gallon of ice cream instead of a half gallon? You know what the latest I mean. We're talking. We're getting into the decimal places now. So there, really there. It's it's really interesting and I can't remember what it was when I when I went in and looked you right, you know what they're gonna do. They're gonna switch to like the metric system. So we really really won't know what...

...it is. Right, it's the same. All right, reach out to John Browning, GUARDIAN ROCK WEALTH DOT COM. You can text Um, if you have one of those smartphones, you can text the word life to twenty one thousand and get his business card, get his copy of his book, Get some information from him, but just reach out, have a conversation and, uh, pick his brain about inflation, deflation and other things to help help you and your family build a life, not just a portfolio. John Browning, thanks again for another great episode. I love talking with you. I'm looking forward to diving in deeper next time on some harvesting issues. Yes, all right, all right, we'll talk to you then. Most try and take care money really is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like John and ow you a free...

...copy of his book build a life, not a portfolio, go to John's website, Guardian Rock Wealth Dot com, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and its affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advice...

...before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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