Finance Friday: Rising Gas Prices & Your Retirement Accounts

When gas prices change quickly at the pump, we notice. After all, gas prices are posted every few blocks in the city, so the frequency of gas price exposure is high. On average, every 10 cent increase in gas prices means an extra $3.10 per week in fuel expenses. In terms of an average American budget, the increase really isn’t as “terrible” as it feels.

But now imagine if you were exposed to changes in your retirement account values every few minutes or hours. If your investments started to fall for several hours in a row, do you think you’d feel like making a change? Frequency of exposure can hurt your long-term investment strategies. That’s one reason your financial service firm sends you quarterly statements, rather than weekly or monthly.

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About Mike Wilson

Michael L. Wilson, MBA, CFP®, CRC®, is the owner of Integrity Financial Planning. Prior to founding Integrity in 1998, he worked for two years as a faculty member at the College for Financial Planning in Denver, training other financial advisors. Mike has 10 years of experience in the mutual fund industry, having worked with Fidelity Investments and Invesco Mutual Funds. He holds an MBA in Finance from Baylor University. Learn more about his work at www.integrityplanner.com.
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