Are You Making the Necessary Plans for Inflation?

August 22, 2019

The Principle:

When plugging in the numbers for what you need in retirement, one thing that is often overlooked is inflation. Is it part of your financial plan? Because like it or not, inflation will happen.

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

 

Honest Takes:

Unfortunately, people too often forget to address the inevitable: inflation. Whether you are years away from retirement or it starts next week, you need to consider how inflation will impact your long-term plan. How do you do that?

Sometimes it means you have to cut expenses, starting now. Or it might mean you need to invest your money somewhere else–somewhere with a little more risk but also a bit more reward. Remember that risk is part of the market, so be prepared for the ups and downs. Finding out if you are invested conservatively or aggressively alongside an advisor will help  you determine what you are most comfortable with for your financial plan.

Inflation, while sometimes forgotten, can be planned for. But what about a life event that you didn’t expect? Bloomberg says couples who split up in their 50s experience a huge decline in their standard of living, particularly among women. Finances take a dive and sometimes there isn’t enough time before retirement to get everything back on track. So what do you do when the unexpected happens?

This episode of the Retire with Integrity podcast we will talk through the ways you can both plan for inflation and how you can pivot when divorce, death, or other life event hits unexpectedly.

Listen to the full episode to hear more from Brian Bowen or click the timestamps below to hear a particular segment.

[0:42] – How do you create financial plans that factor in inflation?

[2:17] – Your money has to work for you.

[3:34] – Have a game plan and ask how much risk you are willing to take.

[4:53] – Some markets have not returned.

[7:17] – Divorce can cause a huge decline in standard of living.

[9:25] – With any major life event, check in with a financial planner to evaluate the situation.

[12:29] – If you are facing a divorce, seek out an attorney, a financial planner, and a tax advisor.

 

Today’s Truth:

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The Host:

Brian Bowen – Contact