Health & Fitness
#18 of “21 Critical Retirement Questions Answered” One at a Time by Gene Offredi CFP© RFC
Retirement Saving Terms And Issues: How big a threat to my retirement is inflation?
Retirement Saving Terms And Issues
Q #18: “How big a threat to my retirement is inflation?”
Inflation has been low in recent years but it’s always a factor. In the future you will need more money to buy the same amount of goods and services. For example, if inflation is 4% annually in 10 years the purchasing power of a dollar will go down to 67 cents. Think of inflation as compounding in reverse. Compounding adds value to your investments while inflation subtracts value.
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