Is it Possible to Deflate Inflation in your Retirement Planning?
Thursday, January 19th, 2012 and is filed under Saving for Retirement
We encourage you to play around with an inflation calculator to get a firm understanding of how inflation can drain the power of your retirement savings.
You’ll quickly see that inflation relentlessly erodes the value of each dollar in your portfolio. As the years go by, many people find themselves forced into risky investments that promise to outpace inflation – or into low-risk, low-reward investments that at least hold their own.
There’s a better way to prepare for inflation––an inflation-indexed annuity.
An inflation-indexed annuity is a single premium annuity that removes inflation risk from your retirement planning and provides you with income for life. You can receive the income on a monthly payment, and its great benefit is that it adjusts the monthly payment upward based on the annual inflation rate. Most indexed annuities are tied into an inflation indicator, such as the Consumer Price Index (CPI). An inflation-indexed annuity will increase the monthly payment each year based on a CPI increase during the prior year…but not decrease the payment if the CPI declines. A decrease in CPI will be used to offset any future annual increases.
If you’re worried about inflation taking a bite out of your retirement dollars, we can help you take the bite out of inflation. Simply click here to request a free Income for Life Illustration. Your Income for Life Illustration shows you the top 3 inflation-defeating income generators tailored specifically to you. With this information, you’ll know without a doubt what income you can expect during your retirement years.