Industry Articles
Industry Articles Home > Stretching your Retirement Dollar News
|
Protecting your retirement nest egg from inflation 2010-04-27 Inflation is a natural, but often unpredictable, market condition that can affect a consumer's assets. Many retired individuals or those approaching retirement may have some portion of retirement income invested in the market and therefore vulnerable to inflation. Maintaining a sizable cash investment or Treasury Inflation Protection Securities will shield the investment from devaluation in the event of inflation, according to Money Watch. Investing in a diversified mutual fund that spreads across many countries is a simple way to hold assets in non-U.S. stocks, ensuring that investments may still profit against the dollar, Money Watch reports. Retirees may also protect assets if they hold a good piece of real estate, reports Money Watch. Real estate, especially with a fixed mortgage, is a tangible asset that is less likely to be adversely affected by inflation as opposed to more liquid investments. Even retirees who do not hold investments in the market may fall victim to inflation through Social Security benefits. Retirees who postpone collecting Social Security will see their benefits increased for inflation, Money Watch reports. Inflation is difficult to predict, but retirees should keep all market fluctuations in mind when planning their retirement and make their money last.  |
