Understanding Inflation and Its Impact
Joel Johnson, CFP® discusses inflation and the impact it causes on this week’s segment of Better Money Atlanta.
How Inflation is Measured
The Consumer Price Index measures the change in price of goods and services in the economy.
This compares the cost of something one year ago with the cost of the same thing today. For instance, if the inflation rate is at 8%, an item that was $1.00 last year now costs $1.08.
The target rate of inflation is 2%, which can be manipulated by the Federal Reserve by adjusting interest rates.
How to Plan for Inflation
Retirees need to have a retirement income plan or projection that shows how much money they need in order to keep up with inflation. Answer these questions in your retirement plan:
- How much income do you want in retirement?
- How many raises will you need to give yourself?
- What interest rate or earning rate do you need?
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.
Related Resources
-
Are My Social Security Benefits Taxable?
If your total combined income exceeds certain thresholds, up to 85% of your Social Security benefits may be taxable. Understanding how Social Security is taxed can help you make informed decisions… -
Right Time for Social Security
Contrary to popular belief, waiting to claim Social Security until age 70 to get the maximum benefit is not the best decision for everyone. So, when is the right time? In this week’s Retire Wis… -
Social Security: Make Your Choice
There are many options when it comes to taking Social Security, but only one that’s right for you. It’s one of the few retirement decisions that is nearly irreversible. Once you choose when to cla… -
Finding Your Way on Taxes
Taxes can be confusing on any given day, but in retirement, they require even more attention and understanding. In fact, taxes are at the core of nine out of every ten conversations we have with t… -
How Can I Transition My Business Value into Money I Can Use?
Today’s question is a crucial topic for many of our clients who are business owners or have significant assets tied up in a business: How can I convert the value of my business into income for my … -
How to Effectively Plan for Healthcare in Retirement
As you approach retirement, the reality of rising healthcare costs becomes clearer. When planning for this significant expense, it’s important to consider all aspects – from prescription drug cost… -
Case Study: Steps to Determine How Much Money You Need
Imagine you’re 63 and ready to retire, with plans to live on $80,000 a year. The question is: how much should you have saved by that time? Nicholas J. Colantuono, CFP® joins Better Money Boston… -
Planning for Your Final Wishes
At its core, estate planning provides security, peace of mind, and control over your legacy. The way you choose to pass on that legacy is a personal decision that warrants careful consideration. … -
Today’s Retirement Reality
Almost one-third of Americans lack confidence that they will have enough income to cover basic monthly expenses throughout retirement. As the economic landscape continues to shift, more individual… -
How to Prepare for Taxes in Retirement
No matter how well you’ve saved for retirement, taxes are an unavoidable part of the process. The good news is that with the proper tax planning, you can minimize this burden and keep more of what…