Inflation Explained

Inflation Explained

Today, Rick Bloom is joined by Bloom Advisors colleague Scott Whyte to discuss all things inflation. It's been a hot topic in the news lately, and we cover what you need to know.

• We begin with a definition of inflation - what exactly is it?
• How is inflation measured and what exactly is the CPI, or Consumer Price Index?
• What about the core inflation rate?
• Why is it important to see how inflation factors into your individual situation?
• Some suggest inflation is here to stay. Others say it's transitory. Either way, we are not facing the historic inflation you may remember from the 1970's.
• Inflation isn't all bad.  What can you do in your portfolio in times of inflation? (Hint: Diversify!)
• Why hoarding cash or gold may not be the best idea.
• What is "shrink-flation?"
• What is inflation's impact on retirees?
• What are some things you can do right now to protect yourself?

Finally, Rick answers a listener email regarding his changing stance on annuities.  Rick explains why he recommended them in the 90's, but not anymore.

If you have a financial question for Rick, you can email him:  [email protected].

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Top 10 Investment Questions Answered

Rick Bloom has been helping people with their money for decades,  and he often gets asked the same questions frequently.  Today, he answers the top ten financial questions people ask him.

1. How much do I need to start investing and when should I start?
2. Can I do it on my own, and if not, how do I choose a good financial planner?
3. How do I invest risk free?
4. What are some of the red flags I should know about in investing?
5. Should I use a Roth or traditional 401k?
6. What is the best investment for a newborn's college education?
7. What does it mean to diversify?
8. How do I know when I should sell an investment?
9. How much do I need to retire? And how much should I save for my retirement?
10. Is buying a house a good investment?

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

How To Fight Your Medical Bills

Today, Rick Bloom is joined by Caitlin Donovan of the National Patient Advocate Foundation for a very important conversation - about medical bills.

Too often, patients just assume their medical bills are accurate and they have to pay every penny. Caitlin dispels that myth.  There's so much nuance with billing codes, insurance coverage and Explanations of Benefits (EOB's), and more.   Very often, you are not  responsible for what you see on that first bill.

There are a number of strategies you can use, including bringing an advocate with you to appointments, trying multiple people in a billing call center, and most importantly, persistence.

You can also negotiate your bills - a hospital, for example, would rather negotiate a settlement with you than not have you pay anything at all!   Rick also mentions the importance of having a medical durable power of attorney should you not be able to make decisions for yourself.

Also, Rick answers two more listener emails - regarding inheriting retirement plans and declaring bankruptcy due to credit card debt.

The National Patient Advocate Foundation is a free resource for many eligible patients.  You can find them online here: https://www.npaf.org/

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Teachable Moments from GameStop

Recently, the stock of GameStop, a brick-and-mortar video game retailer, temporarily soared, pitting day traders from the Robin Hood app against Wall Street hedge funds, who had shorted the company's stock. Today, Rick Bloom is joined by Scott Whyte of Bloom Advisors.  They break down the story, including many teachable moments that came from it.

There are risks to buying stocks and investing. It's not the same as gambling in Las Vegas. When done right, it's more about using research and data than a simple game of chance. And investing is about the long haul, not how a stock is going to do 2 weeks from now. We learn more from our mistakes than our successes, which is why "beginners luck" can be a dangerous situation for investors.

Scott and Rick explain the Robin Hood app, day trading, shorting a stock, and the dangers of buying on margin.  Also, there's more to this story than David vs. Goliath - especially the risk to "David."

In the end, it's about diversification and investing for the long term.

Finally, as always, Rick answers listener emails.  Today he covers land contracts versus mortgages, as well as the need for estate planning. 

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.

Year End Tax Planning with CPA Jonathan Goldberg

With 2020 (finally) drawing to a close, many have you have emailed Rick Bloom questions about year-end tax planning.  So today, Rick is joined by Jonathan Goldberg, a CPA, financial advisor, and member of the Bloom Advisors team.

Remember, the goal is not to reduce your income; it is to reduce your taxes.

• Jonathan and Rick cover many topics, including:
• The $300 above the line deduction for charitable contributions available in 2020.
• Contributions of investments that have significant gains to charities.
• QCD's, or Qualified Charitable Distributions
• Deductions of investment losses and wash rules.
• The pause on Required Minimum Distributions (RMD's) in 2020.
• Roth Conversions
• Tax deadlines returning to normal
• Maximizing retirement plan contributions by end of year.
• NOT deducting home office expenses if you began working from home in the pandemic.

Rick closes today's show by answering listener emails about charitable donations and paying off home mortgages.

Note: Bloom Asset Management is now Bloom Advisors.  Find Rick and the team at https://www.bloomadvisors.com/  or call (248) 932-5200.