Managing Income In Retirement
Managing income in retirement
retirement
Hedging 7 big retirement risks

Managing Income In Retirement » Hedging 7 big retirement risks

Retirement risk No. 2: inflation
Next
Slide 3 of 8
Back
Retirement risk No. 2: inflation

Another key risk is inflation, the inevitable increase in the cost of goods and services, including housing, clothing, food, electronic devices and health care. Even with very low rates of inflation, say 3 percent a year, you would lose half of your purchasing power over two decades, Mervine says."That's probably the biggest risk to investors' long-term ability to make ends meet," he says.

To guard against inflation, you can invest in inflation-protected securities or other investments that will gain value as overall prices climb. For instance, stocks in your portfolio aimed at growth rather than income will provide a hedge against inflation, says Michael Reese, Certified Financial Planner and founder of Centennial Wealth Advisory based in Traverse City, Mich.


 

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Have your grandkids teach you tech

Ask tech-savvy holiday visitors to teach you new and valuable skills.  ... Read more

advertisement
Partner Center
advertisement

Connect with us