I recently had the chance to chat about a topic that’s super important but often overlooked when it comes to retirement planning: inflation.

Let me tell you, inflation is no joke when you’re thinking about your golden years. It’s basically a sneaky way your money loses its punch over time. In our podcast chat, we dove into why it’s crucial to wrap your head around inflation, especially as you’re getting close to retirement.

One thing I really wanted to drive home is that inflation isn’t some steady, predictable thing. It can really fluctuate. I mean, we’ve seen everything from 2% to 5% in recent decades, and there have even been times when it hit double digits! That’s why it’s so important to plan for your purchasing power to take a hit over the years.

We also talked about the particular challenges folks on fixed incomes face. If you’re relying on things like bonds that give you a set amount, you might find yourself in a tight spot as the cost of living creeps up.

But don’t worry, it’s not all doom and gloom! We discussed some strategies to fight back against inflation, like diversifying your investments. The goal is to have some of your money in places where it can grow faster than inflation.

Now, when it comes to actually managing your money in retirement, it’s all about balance. We chatted about withdrawal rates and how to juggle different types of assets to keep your income flowing while still giving your investments room to grow.

Oh, and here’s something a lot of people forget about: healthcare costs. These tend to rise even faster than regular inflation, so we talked about why it’s smart to set aside a specific chunk of change for medical expenses and grow it at a different rate.

Bottom line: understanding inflation and how it can impact your retirement savings is key. By planning ahead and using some smart strategies, you can set yourself up for a retirement that’s not just comfortable, but financially secure too.

Remember, this is just a quick overview of our chat. If you want to dive deeper into any of these topics, make sure to check out the full podcast episode. Thanks for tuning in!

Here are the timestamps from the podcast:

[00:02:31] Inflation impact on fixed incomes.

[00:06:25] Protecting retirement savings.

[00:08:37] Withdrawal strategies in retirement.

[00:12:18] Diversifying with real estate assets.

[00:18:42] Healthcare in retirement.

[00:19:17] Healthcare inflation concerns.

[00:23:08] Planning for retirement and insurance.

Opinions expressed in the following podcast are those of the author/speaker and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.

Prior to making an investment decision, please consult with your financial advisor about your individual situation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities.Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.