Eugene M Jennings Jr Billy R Kilgore Sr Carol D Roberts Thelma L Gray Sheriff Ellis meets President Trump Quarter Auction to pay for fire engine restoration Upcoming Quarter Raffle, Oct. 14 to benefit PRC Man found dead in ditch Rev Alvin B Woodruff Jackson L Russell Lady Broncos bring home 11th SBAAC American Division title in 12 years Lady Rockets wrap up regular season Warriors rally for win Broncos make it two in a row Helen L Whalen Veterans saluted at the Brown County Fair Fayetteville cancels school after threat Tommy J Stamper Sue Day Broncos move closer to SBAAC American Division title Lady G-Men working hard, showing improvement Sports complex soon to open in Mt. Orab Week 6 football roundup H Ray Warnock Jennings faces multiple sex offenses Georgetown nears water system completion Bible Baptist Barbeque brings big crowd Linda Taylor Rene Sizemore-Dahlheimer Eugene Snider Eric Workman Gregory Terry Edith M Moore Eileen Womacks Michael C Jennings Janice K Brunner Cheer squads compete at ‘Little State Fair’ Truck, tractor pulls draw a crowd at Brown County Fair Week 5 football roundup Lady Broncos rise to 11-6 with win over Batavia Broncos buck Clinton-Massie, Goshen James H Boyd Warren A Stanley Jane R Ernst Darrell F Anderson James W Ball Jr June R Paul Robert Kattine Tony W Ratliff Carroll G Boothby Sawyers details revealed in court filing Varnau loses appeal ruling on blocked Goldson investigation Sardinia to hold town hall on street repair “Senior Playground” under roof, to open soon Janet R Whitt Jacqualine Attinger L Mae Spencer Battle between Broncos, G-Men ends in tie SB Warriors rout Peebles, 60-0 Lady Jays celebrate first victory Lady Rockets on a roll Rockets cruise to 4-0 Broncos celebrate homecoming Sininger wraps up another outstanding regular season of high school golf Joan E Stevens Esther R Kennedy Myrtle Mays Sheriff Ellis deploys to Florida Sending gifts from home ABCAP Entrepreneurship Seminar G-Men win streak hits 5 Runners compete at Vern Hawkins XC Invite Lady G-Men stand at 3-2-2 SHAC play begins for Ripley golfers Week 3 football roundup Jays rise to 5-2 with win over Williamsburg Audrey F Staten Inmate housing options narrow Opiate addiction strains Municipal Court Lillian E Cowdrey Catherine A Houk Warriors win Jim Neu XC Invite Week 2 football roundup Broncos unbeaten at 4-0 Lady Broncos compete in Bob Schul XC Invite Ronnie L Day Nettie F Lightner Wallace sentenced to life in prison Court filing links Anderson and Sawyers Man killed in Fatal Crash on US 52 Henry E Fields Anleah W Stamper Maxine M Garrett U.S. 68 reopens Drought ends for Lady Rockets G-Men rise to 3-1 with back-to-back victories Rockets cruise to 4-0 win over Jays Lady Broncos start off SBAAC American Division play with 3-2 win over Goshen Week one football roundup Fair board president Orville Whalen passes away

Inflation and your Retirement Income Strategy

You might not think much about inflation. After all, it’s been quite low for the past several years. Still, you may want to take it into account when you’re planning your retirement income strategy.

Of course, no one can really predict the future course of inflation. But it’s a pretty safe bet it won’t disappear altogether — and even a mild inflation rate, over time, can strongly erode your purchasing power.

Consider this: If you were to purchase an item today for $100, that same item, in 25 years, would cost you $209, assuming an annual inflation rate of 3%. That’s a pretty big difference.

During your working years, you can hope that your income will at least rise enough to match inflation.

But what about when you retire? How can you minimize the impact of inflation on your retirement income?

One thing you can certainly do is include an inflation assumption in your calculations of how much annual income you’ll need.

The number you choose as an inflation factor could possibly be based on recent inflation levels, but you might want to err on the conservative side and use a slightly higher figure. Since you may be retired for two or three decades, you might have to periodically adjust the inflation factor to correspond to the actual inflation rate.

Another important step is maintaining an investment portfolio that can potentially provide returns well above the inflation rate. Historically, stocks have been the only investment category — as opposed to investments such as Treasury bills and long-term government bonds — whose returns have significantly outpaced inflation.

So you may want to consider owning an appropriate percentage of stocks and stock-based investments in your portfolio, even during your retirement years.

Now, you might be concerned at the mention of the words “stocks” and “retirement years” in the same sentence.

After all, stocks will fluctuate in value, sometimes dramatically, and even though you may be retired for a long time, you won’t want to wait for years to “bounce back” from a bad year in the market. But not all investments move in the same direction at the same time; spreading your dollars among a range of asset classes — large stocks, small and mid-cap stocks, bonds, , certificates of deposit (CDs), foreign investments and so on — may help you reduce the impact of volatility on your portfolio.

And you don’t even have to rely solely on stocks to help combat inflation. You could also consider Treasury Inflation-Protected Securities, or TIPS. When you purchase a TIPS, your principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index.

Your TIPS pay interest twice a year, at a fixed rate; this rate is applied to the adjusted principal, so your interest payments will rise with inflation and fall with deflation.

When your TIPS matures, you will receive adjusted principal or original principal, whichever is greater.

As is the case with other bonds, though, you could choose to sell your TIPS before it matures.*

Work with your financial advisor to help decide what moves are right for you to help protect your retirement income from inflation. It may be a “hidden” threat, but you don’t want to ignore it.

* Yield to maturity cannot be predetermined, due to uncertain future inflation adjustments.

If TIPS are sold prior to maturity, you may receive less than your initial investment amount. I

f bonds are not held in a tax-advantaged account, investors will be required to pay federal taxes on the accredited value annually, although they will not receive any principal payment until maturity.

When the inflation rate is high and the principal value is rising significantly, the taxes paid on TIPS may exceed interest income received.

Therefore, TIPS may not be suitable for investors who depend on their investments for living expenses.

Jim Holden is a local Edward Jones Financial Advisor in Georgetown. Edward Jones, it employees and financial advisors are not estate planners and cannot provide tax or legal advice.

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