Should you be fearful inflation will ruin your retirement?

From the gas pump to the grocery store, we’re all feeling the pinch of higher prices, but few are feeling it like retirees.

A recent survey found that 71% of retirees are fearful that inflation will ruin their retirement.

Patrick and Kevin Hart, a father-son team from Concierge Capital Management, discuss pertinent issues with inflation and retirement funds.

Why are prices rising so high?

The Harts said prices became high when the global supply chain got destroyed during the pandemic. They compared the situation to a relay team in track that needs to pass batons.

“Teammates No. 3 and No. 4 are standing around, waiting for their turn to start,” Patrick Hart said. “This is what happened during the pandemic. All companies were waiting for the something to show up so they could start and this is what caused these bottlenecks and slowdowns. Didn’t matter if it was the grocery store or the lumber yard. Rising prices were felt everywhere because there was such little supply available.”

They added that the war in Ukraine has driven gas prices higher, which everyone relates to inflation.

How can retirees keep up with rising costs?

Kevin Hart said exploring an accumulation strategy is essential. He said that historically, equities and stocks have done a good job hedging against rising cost.

“In times like these, it’s important to realize there are different sectors of equities that need to be addressed,” he said. “There are growth stocks, value stocks and dividend paying stocks, and the emphasis or bias we place on these multiple sectors will depend on individual circumstances (such as) time frame and risk tolerance against the size of their current nest egg.”

What is the first step to take?

The first step the Harts say to take is to get a retirement plan in place, especially if you have saved more than $500,000 for your retirement.

More information on how to get such a plan started, call 904-204-1970 or visit this website.