NerdWallet's Smart Money Podcast How to Prepare for Stagflation and Make Your Insurance Work Harder
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May 22, 2025 Discover how stagflation can impact your financial future and the key indicators to watch for. The hosts dive into whether life insurance is still necessary even with substantial wealth. Get insights on adjusting your savings strategy in uncertain times and the importance of monitoring inflation. A listener joins to discuss insurance coverage, the benefits of umbrella insurance, and how to tackle college savings for three kids. Tune in for expert advice on evaluating life insurance and making informed financial decisions.
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Understanding Stagflation
- Stagflation is the rare combination of inflation and economic stagnation occurring simultaneously.
- Inflation signals a hot economy while stagnation signals slowdown, so their coexistence means economic imbalance.
Stagflation Risk in 2022
- In 2022, stagflation became a concern due to high demand but supply chain struggles and rising oil prices.
- The economy risked stalling while inflation remained high, a classic stagflation dilemma.
Prepare Financially for Stagflation
- Build or rebuild your emergency fund to prepare for stagflation.
- Reduce high-interest debt and postpone major purchases to maintain financial stability.