Wednesday, May 16, 2012
5 BIG RISKS TO YOUR RETIREMENT, PART 3—BE PREPARED FOR INFLATION
10:14 AM | 
Posted by
pensionfinancialservices |
“Inflation is as violent as a mugger,
as frightening as an armed robber and as deadly as a hit man”—Ronald Reagan
“Inflation is taxation without
legislation”—Nobel laureate economist Milton Friedman
So rather than being a “victim,” are
there ways for individual portfolios to “legislate” against the ravages of
inflation?
The next part in a valuable Fidelity
series on five rules that ensure that your income needs are met during
retirement reminds us what doubtless many have already experienced during these
trying economic times: that, inexorably, inflation is eating away at our
purchasing power of goods and services.
The article puts it in stark
statistical terms, pointing out in one hypothetical case that even a relatively
low inflationary rate of, say, 2%, can, over time, have a profound impact. For
example, it’s pointed out that $50,000 today would in 25 years be worth $30,477
in terms of a retiree’s purchasing power.
Some income sources (e.g. Social
Security, various pensions), with annual cost-of-living triggers, can keep pace
with inflation; others can’t. The experts at Pension Parameters Financial Services, Inc., can help you better navigate the inflation minefield, devising
investment strategies that can negate, or at least minimize, its impact on your
retirement future.
In the next post: position
investments for growth. Meanwhile, if you would like to take a look at some projections into your future, contact:
Pension Parameters Financial Services, Inc.
28 West
44th Street
New York, NY 10036
Phone: (212) 675-9360 Fax: (212) 675-9363
New York, NY 10036
Phone: (212) 675-9360 Fax: (212) 675-9363
675 Line
Road
Aberdeen, NJ
07747
Phone:
(732) 583 -1313 Fax: (732)
583-6991
Labels:
inflation+retirement
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