Hi Jan,
Happy Fourth of July! With much of the country baking under a heat wave this week, I imagine plenty of you are staying indoors more than usual, which makes it a good time to think through something that matters just as much as staying cool: how your retirement plan holds up when prices don't.
Stocks get a lot of credit as an inflation hedge, and over long stretches of time that credit is earned. But retirement spending doesn't happen over decades. It happens this week, this month, this year. In this week's article, I look at why owning stocks isn't the same thing as having an inflation strategy, and what it actually takes to keep your income steady when costs climb.
| | | | The Biggest Inflation Mistake Retirees Make Stocks are often described as one of the best long-term hedges against inflation. While that statement is generally correct, it can contribute to more retirement planning mistakes than most people realize.
By Retirement Researcher | | | | Can TIPS Help Manage Inflation in Retirement? Inflation is one of the few retirement risks that can build gradually and do real damage before retirees fully recognize its impact. It does not arrive all at once. Instead, it shows up gradually in higher grocery bills, rising insurance premiums, and the slow realization that the same lifestyle costs more each year than expected. Because income is often less flexible after retirement, adjusting to these rising costs can be difficult. Even modest inflation can become meaningful when it compounds over a retirement that may last 25 or 30 years.
By McLean Asset Management
| | | | Are Stocks Enough to Protect You From Inflation?
Alex and I continue our YouTube Live Q&A marathon, starting with a listener pushback on stocks as an inflation hedge, backed by real return data from 1965 to 1975 and 2000 to 2012. We also get into deferred income annuities versus SPIAs, and how a QLAC interacts with the backdoor Roth pro rata rule.
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