The Rising Inflation Rate
On this episode of Better Money Atlanta, Joel Johnson, CFP® discusses the rise of the inflation rate and what that might mean for retirees. Learn more about:
- How inflation can erode purchasing power
- How inflation can have a negative effect on fixed income sources
- Developing strategies to provide guaranteed income
- Spending wisely
Comparable to a hidden tax, high inflation rates leave us with less money to spend overall. This affects people in retirement specifically, as most are living on a fixed income. If retirees can’t keep up with the rising inflation, they may be forced to dip into their savings.
It’s also important to note that money loses purchasing power during periods of high inflation rates, meaning the value of one dollar decreases and people pay more to buy the same goods that they previously bought for less. For instance, paying $1.08 this year for a product that they paid $1.00 for last year.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
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