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You’re Being Robbed … You Just Don’t Know It

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If you’re wondering whether you should be concerned about rising inflation and what it could do to your purchasing power in retirement, the answer, of course, is yes.

And not just right now, but always.

Inflation has been a hot topic lately as the U.S. economy emerges from its pandemic coma. Economists aren’t expecting the double-digit inflation levels the country suffered in the 1970s. However, there are worries that inflation could continue to rise over the next few months or years if the economy overheats.

That could have a big impact on pretty much everyone’s pocketbook and portfolio — and can be especially detrimental for anyone on a fixed income. For retirees and soon-to-be retirees, inflation should be a hot topic all the time.

That doesn’t mean running out and throwing all your money at stocks and other risky investments. Overly aggressive investing can make retirees vulnerable in ways that can be much more devastating than inflation.

But there are moves that can help protect you if rising prices make it tougher to live on the retirement paycheck you’ve created for yourself.

It’s a good idea to have money in savings that’s easily available to you. But not too much. I recently met with a gentleman who had about $750,000 set aside in cash and cash equivalents. I’m sure that made him feel safe. But his money is losing value — even if........

© Kiplinger

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