Should inflation cause panic? Are spikes in inflation a new phenomenon? How will it impact my retirement?
Join our hosts Stephen Stricklin and Paul Brock for Season 4, Episode 3 as they answer these questions and more! They talk about the importance of considering inflation when relating to retirement, in this timeless episode designed to share with friends and family. Inflation, as defined by Investopedia, is the decline of purchasing power of a given currency over time. Retiree’s feel the impact of inflation more than most. With an average inflation rate of 3% per year, they need to be prepared for a change in the power of their dollar years down the line.
Discussed in seasons 1 and 2, there are three phases of investing when it comes to retirement; accumulation phase, preservation phase, and distribution phase, and no matter what phase you are in, there are different goals set in regards to inflation. For a practical way to meet the goals of each phase, incorporate the three bucket approach, separating your money into a “liquid bucket,” an “income bucket” and a “growth bucket.”
Stephen and Paul discuss:
- What inflation is
- Misconceptions about inflation
- Being proactive when it comes to inflation impacting your retirement.
- Three phases of investing; accumulation, preservation and distribution, what they are and what each specifically needs to focus on regarding inflation.
- The three bucket approach; liquid bucket, income bucket, and growth bucket, and the purpose for each.
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