I seem to be stuck on the seniors’ situation lately. There was an article in July of this year in Forbes that keeps coming back to me, and there is some information in it that helps explain things and doesn’t reflect an outlook of doom and gloom – totally.
The fact that seniors are generally on some type of fixed income is a given, but inflation affects different people in different ways depending on what you spend your money on. As you get older, your spending changes. Seniors who are not in retirement yet are likely spending money on food, transportation, clothing, and entertainment.
As seniors move into retirement years, changing often shifts to spending on healthcare, charities, and services.
With inflation right now, what are some things to consider to be able to maintain a lifestyle reasonable to pre-retirement? (This of course addresses the people that fall into the category of having a decent job with decent pay that meets the needs of bills, etc.)
Education is key here.
If inflation rates are so high that the retirees on fixed income cannot keep up, what then? Either you reduce spending or increase the amount you withdraw from your qualified accounts in your portfolio. (If you are one of the fortunate ones who has either a 401K or an IRA.)
Education is key here.
If inflation rates are so high that the retirees on fixed income cannot keep up, what then? Either you reduce spending or increase the amount you withdraw from your qualified accounts in your portfolio. (If you are one of the fortunate ones who has either a 401K or an IRA.)
This is a scenario where many can run out of money before they pass away. It’s a scary thought, but with some education, you may find that you have some hidden options.
“High inflation and rising rates may create additional volatility in the stock market which affects retirees more since they are actively taking withdrawals from their investment accounts."
Again, are there options available to counteract the situation? In many cases yes, education is key. Now is the time to review current financial plans and identify your potential future tax increases as well as, and more importantly, explore how it affects your income in retirement.
Give us a call and get your review started today: 775-365-9429 or info@mvplwrc.com
For more info in the Forbes’s article, read here: