Are you saving too much?

If you're a student of financial planning you'll know that saving for the future is an important thing to do. It's not every day that someone comes and tells you that you're saving too much. Well, let me be the first to tell you. You may be saving too much.

It may turn out that the next 30 years may not prove to be as inflationary as we thought. And if that's the case, then it would have turned out that you didn't need to save as much as you did.

And I'm not saying stop saving altogether. Just keep in mind should prices for goods and services remain the same, or decline, over the long run, your ability to save now will mean enjoying the consumption of more goods in the future.

Under a long-term, deflationary scenario your quality of life might actually increase during retirement.

Coachella Valley locals probably don't feel this to be the case since housing prices continue to rise. But if you own your home, you might find that consumer goods will cost the same.

There's so much deflation at work right now. We continue to become more energy efficient, increasing demand for electric cars and solar, combined with low oil prices keeps energy prices in check. A strong dollar means cheaper imports, and you can increase your travel budget.

Unfortunately the deflationary story isn't guaranteed. President Trump is making efforts to impose tariffs on global trade and become more protectionistic. This is inflationary. The FED continues to drum up policies that stimulate growth and create inflation. A sudden drop in the US dollar could also add to the inflation story.

Like most things in life there is no guarantee here but working with your financial advisor to devise a saving strategy that doesn't take away from the now maybe rewarding. And even more rewarding if the deflationary story has a happy ending.