Unfortunately, no one is safe from the negative impacts inflation has on our society. Inflation has reached an all-time high over the past 40 years alone, leaving most of our senior citizens feeling worried over stringent budgets and tight retirement benefits. While there are no guarantees against inflation, retirees can adhere to a few suggestions to protect retirement benefits and Social Security against inflation. While many financial professionals may attribute cash to being King, that isn’t always true for every situation. Although everyday expenses may require available funds in a savings or checking account, it doesn’t work well throughout inflation. As inflation rises, it’s more challenging to use the same budget to buy the same goods and services with cash. Instead, you are poised to maintain purchasing power by investing in long-term investments. If you have a pre-existing portfolio, investing in assets that maintain purchase power is more important than ever. This may come in the form of a stock-heavy portfolio alongside other investments. Long-term stocks effectively outpace inflation over the long haul. Ultimately your wealth continues to grow even after the impacts of inflation hit. When you purchase an individual stock, look for companies with a history of raising prices for goods and services throughout periods of inflation. Treasury Inflation-Protected Securities (TIPS) are a type of bond protected from inflation. This type of investment within your portfolio can prove extremely valuable as you approach retirement. According to the Consumer Price Index, TIPS bonds are protected from inflation through principal amount adjustments via deflation. Interest is based on the adjusted principal amount and is paid out twice every year. Plus, when the bond reaches maturity, you receive a higher amount of either an adjusted principal or the principal amount at the point of purchase. Being budget-conscious is another way to make your retirement income work in your favor. By saving more money, before you retire, you are poised to enjoy the fruit of your labor for many years to come. Ultimately, those money-wise habits will play in your favor after entering retirement. For example, the 4% rule is a popular approach to making the most of a 30-year retirement. By keeping your withdrawals low, you can maintain funds throughout retirement.
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After spending many years studying information technology, specializing in web development, digital marketing, and search engine optimization (SEO), I enjoy applying my skills and experience in helping others achieve their goals online.As a marketing specialist at Credkeeper, I help people get the most out of their online reputation. Your prospects perform Internet searches for your name before they buy from you. What they see on the first page of Google outweighs almost all other marketing! What do people currently see when they search your name on the Internet?If you would like to know more about Credkeeper and what we can do for you, feel free to reach out to me!
