Below is a link to an article regarding inflation forecasts for the next few years. The author believes that high levels of inflation are inevitable because “America’s debt is mounting too fast for dollars to retain their value.”
The article states that inflation historically has been about 3% per year. In addition, the article makes a case for high levels of inflation over the next few years and mentions actions that can be taken to protect your investments from the ravages of run-away inflation.
We believe that a retirement plan should include a 3% annual inflation rate and that workers and retirees need to be alert to possible increases above the 3% annual rate.
Without risk you need to buy CD’s certificates of deosipt and money market accounts that are both FDIC insured that way there is no or very low risk. also US savings bonds and T- bills are no risk. Mutual funds, and other items are more risky. you can make the group of accounts (CD’s, Tbills) your IRA and it is tax sheltered but then if you make it an IRA you can not withdrawal until you are at least 59.5 years old. add to it at least 10% of your income. also look into a 401K at work because you may get matching funds then put that 401K into a low risk or no risk investment that is offered under the 401k plan. Contibrute at least enough to get the full match or if no match put at least 10% into this and you will be oK. Actually better than OK if you open both the iRA and 401K and save 20% of your income between the two.
Exactly! You summed it up nicely. If everyone did what you wrote, they would have a great retirement.
Thanks.