1 Simple Tactic to Keep Inflation From Killing Your Retirement

What will price jumps mean once you no longer have a paycheck? Take this step to ensure less panic now and more comfort later on.

MTN Staff • November 19, 2021 

Does life seem a lot more expensive these days? It’s not your imagination. Consumer prices were 6.2% higher in October 2021 than they were last October, according to the U.S. Bureau of Labor Statistics.

Things aren’t yet as bad as they were in the 1970s, when inflation sent prices through the roof. Even so, it’s hard not to worry when your paycheck buys less and less.

And what will happen when you retire and no longer have a paycheck? In a recent podcast, Money Talks News founder Stacy Johnson noted that your golden years are also “the years your income will likely rise less than prices will.”

Fortunately, there’s a simple tactic to calm your fears: working with a qualified financial adviser. A free matching service called SmartAsset can help you find a money expert who will let you know whether you’re on the right track.

One independent study indicates that those who work with a financial adviser not only feel better about their finances, they could also wind up with about 15% more money for their golden years. In other words, you’ll be less panicky now and more comfortable later on.

Looking at the big picture

Too many people either have no idea of how to save for retirement or have gotten bad advice in the past. For example, suppose you grew up in a household that prioritized cash savings above all. Sure, it’s important to have a certain amount of liquid assets. The problem is that inflation will erode those assets over time.

Or maybe you started out investing aggressively in stocks, and saw no reason to change once you hit your 50s. A heavy reliance on stocks probably isn’t the right strategy as you get older. Should there be a major market correction right after you retire, you’d suddenly have a lot less money — and no time to let the portfolio rebound.

Here’s where that financial adviser earns their keep. A good adviser looks at the big picture — what you have versus what you’ll need — and offers strategies to create a retirement scenario that works. They’ll aim for a portfolio mix that’s designed to fit different stages of your life.

The bottom line

It’s smart to be concerned about inflation. But don’t be paralyzed by financial fear. Instead, let it galvanize you into taking charge of your life.

If you want to rest a little easier in these turbulent times — and to be more comfortable in retirement – then get started now.

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