On this episode of the Planned Solutions Incorporated Podcast, Inflation rates have been in focus as the year-over-year inflation rate hit 5% in May. However, many gauges of future inflation rates show a far more subdued picture. The 10-year inflation breakeven rate, a gauge of investors’ expectations for inflation over the next 10 years, is currently just 2.33%. In addition, interest rates, which typically increase during periods of high inflation, have actually declined since March signaling low inflation expectations.

Also, Home prices increased 24% year-over-year according to the National Association of Realtors. Meanwhile, the number of existing homes listed for sale has declined over the past four months leading to an even greater mismatch between housing demand and the supply available in the market. This may continue to be supportive of home prices until homebuilders bring new supply to the market.

And, The IRS is finally getting around to correcting tax returns that claimed unemployment benefits but were filed before the American Rescue Plan Act (ARPA) was passed. Under ARPA taxpayers may exclude up to $10,200 of unemployment benefits from federal income tax. Taxpayers who did not claim the exclusion will likely be due a refund once the IRS makes the corrections on their returns. However, taxpayers with more complicated returns may want to analyze to make sure the IRS changes are correct and that they receive the full benefit under the law.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- As people continue to get vaccinated and the number of COVID-related hospitalizations declines, the world is starting to get back to normal for many of us. In line with this trend, Planned Solutions will once again be back in the office full time following the Fourth of July holiday. So, if you have been holding off on setting up a review meeting until the meeting could be in office, this is the time to set up a meeting. We look forward to returning to some normalcy and being able to see many of our clients in person once again. Of course, those who do not live in the area or are not comfortable meeting in person can still schedule meetings via phone or Zoom.

We have spent the past several months reviewing our cybersecurity strategy to ensure we are using the best practices from our industry to keep our clients’ information safe and ensure operational continuity. As a part of this review, we are constantly seeking out new ways to keep our network secure, securely communicate with clients, and detect any attempts by hackers to breach any part of our systems. As a result of our recent review, Planned Solutions will increase our cybersecurity budget to upgrade our capabilities and incorporate new services designed to detect and prevent data breaches. The security of our client's data is very important to us, making cybersecurity one of our fastest growing budget items in recent years.

Chase Armer's book- Financial Planning Insights is now available at:

store.bookbaby.com/book/financial-…anning-insights

www.amazon.com/Financial-Plannin…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

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