Inflation is a silent killer in our economy. It is the bane of savers and retirees who have to make sure the money they have in their pocket will last for the rest of their lives. And one of the best ways to offset inflation is to have a diversified portfolio.
A diversified portfolio is one that has a number of different assets in it. These assets are more than likely not all the same.
They may be different stocks and bonds, or they may be different types of stocks and bonds. A portfolio that has a number of different assets in it is one that won’t be as affected by inflation.
For Canadians exiting the workforce or eyeing retirement, decades-high inflation levels have come at the wrong time.
What to do about inflation
Inflation is the general increase in the prices of goods and services over time.
The prices of goods and services are increasing faster than the rate of inflation. Even if you are not a retiree, you may want to learn more about inflation because of its effects on your investments.
The effects of inflation can also be very different for people depending on the types of assets they have invested in. With all these factors in mind, it is important to understand how inflation can affect you and how you can offset inflation in retirement.
When inflation rises, you can buy less with your money. The good news is that there are a few things you can do to combat inflation in retirement.
The common cure for rampant inflation on a household budget is higher earnings. But for the recently retired, the soaring cost of living is forcing many to find clever ways to cut costs.
Read more about this in Global News.
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It is important to understand how inflation can affect you and how you can combat inflation in retirement.
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