Rising prices can be a threat to investors of all ages. There is no age at which you don’t need growth. Photo by Tara Clark on Unsplash
Thank you again to CNN’s Jeanne Sahadi for the chance to talk about how to protect your nest egg from inflation and why there is no age at which you can say, “I don’t need growth.”
Today’s budding inflation fears remind us how a well-designed portfolio can help protect us from the effects of rising prices. We need our portfolios to grow faster than inflation to help us preserve purchasing power and actually get ahead of the game.
Cash in the bank can’t protect us. In fact, holding too much cash can actually cause us to lose purchasing power, as cash yields less than zero once inflation is factored in.
“At the very least you need to keep up with inflation. Otherwise, you get poorer,” Mari told Jeanne in the CNN interview. A diversified portfolio of stocks, bonds, and alternative investments is usually the best defense for most investors, and a good way to generate a growing income stream in retirement.
And don’t forget that with today’s longer life expectancies, everyone needs growth, regardless of how many decades they’ve lived. “There is no age at which you can say, ‘I don’t need growth,'” advised Mari.
You can read the entire CNN article here.
Questions about your portfolio and inflation? Feel free to call to discuss our outlook and how your investment strategy can handle rising prices.
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