It’s the time of year again when you have to start worrying about inflation and the impact it’s going to have on your retirement in the future. How bad will it be? How can you keep your retirement savings protected and earn as much as possible even when inflation strikes?
Inflation is something that you need to be aware of every year, and even more so now with the state of the economy in the middle of an inflation spike. So, whether you have ten years or more until you retire or you’re an older American on the verge of your retirement, you want to be able to understand how inflation will affect your retirement plans.
That’s exactly what your friends at Maggi Tax want to break down and discuss with you today. This way, you know exactly why inflation is a concern for your retirement plans and how investing can help ease your mind regardless of the inflation rates.
Why Should You Worry About Inflation?
Every person in America is feeling the impact of the current spike in inflation, whether you’re buying groceries at the store and paying seven times as much for your favorite seafood or you’re watching your retirement savings dwindle. The belief is that the rising inflation rates will impact your retirement savings, which can impede your ability to have a steady income when you retire.
For instance, with an average inflation rate of roughly 3%, it can still impact your finances over 20 years. How? Say you need $60,000 for retirement year one, but at an inflation rate of only 3%, it means that you actually need $108,000 to match what that original $60,000 can buy now.
How can you get ahead of inflation to ruin your retirement plans? Let’s take a look.
Here are the Maggi Tax pro retirement tips to staying ahead of inflation and making the most of your retirement.
Maximize Your Savings & Minimize Debt
This is the most obvious first step to creating the retirement of your dreams. And it’s also self-explanatory.
Rethink Your Retirement Goals
Because of the nature of inflation, you want to rethink your retirement goals and consider altering your timetable of some of your goals. If you don’t want to modify them, you want to start making financial adjustments to afford them. Adjusting your portfolio to be more aggressive for higher returns could be one way to consider staying ahead of inflation.
Be Sure to Watch The Fed
This is your best bet to staying ahead of inflation and its impact on your retirement because the way that the Fed reacts and responds, or doesn’t, to inflation is the most significant factor to knowing how it’s going to impact the financial markets.
Make The Most of Your Social Security
If you’re close to reaching your maximum social security benefits, then you may want to think about staying on until you do. The more you can get out of your benefits, the more flexibility in your retirement you may find that you have.
These expert inflation-proof tips can help you create a successful income model for your retirement. The income specialists at Maggi Tax have the knowledge and experience you need to help ensure that you’re making the most of your retirement regardless of inflation. We can help you navigate the complicated process and set you up for success. Call us today at (813) 850-0131.