Rethinking Retirement: Inflation — The Silent Portfolio Killer
Rethinking Retirement:
Inflation — The Silent Portfolio Killer
Most investors worry about market volatility, but the threat that does the most damage is often the quietest one: inflation.
It does not make headlines every day, but it is always working. A steady 3 percent inflation rate cuts your purchasing power in half over 25 years, meaning the same retirement income buys far less in the later years of life. For retirees who have shifted heavily into bonds or cash, that loss of purchasing power can be devastating.
At WWM, Jackie and I view inflation as a long term risk that requires a long term plan. That is why our Gather and Preserve process balances stability and growth, allowing portfolios to adapt to changing environments rather than react to them.
Reserve Accounts help preserve short term income needs from immediate inflation shocks. Bridge Accounts combine defensive and growth oriented assets to offset rising costs over time. Momentum Accounts keep a portion of assets working to outpace inflation and preserve purchasing power for the future.
The goal is not to chase returns. It is to stay ahead of erosion.
WWM Insight: Inflation is a slow thief. It does not crash markets, it quietly steals purchasing power. Staying balanced and adaptable is the best defense.
Disclaimer:
This commentary is provided for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. The views expressed are those of Wolter Wealth Management and are subject to change without notice. Please consult with your financial professional before making any investment decisions.