How to Counter the Impact of Inflation, Ep #46 

<p>What is causing inflation concerns? What does it mean for the average retiree? What should you be doing to counter inflation? The cost of living is higher than ever. Unfortunately, inflation is here to stay. You need to be able to survive and pay for the increased cost of living. So you have to plan for it. What is the best way to do that? Learn more in this episode of Retirement Made Easy!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:41] Inflation: the cost of living</li> <li>[4:53] How inflation can be measured</li> <li>[7:47] Why inflation is higher than anticipated</li> <li>[13:31] The economy is playing catch-up</li> <li>[15:03] The biggest mistake people make</li> </ul> <h2>What inflation means for you</h2> <p>When people hear the word “inflation” they just think it’s an economic term that doesn’t apply to them. <em>That couldn’t be further from the truth</em>. Inflation is the rising cost of living. Over time, goods and services will cost more. </p> <p>Inflation can be measured in a couple of different ways. The most common is the Consumer Price Index (CPI). The CPI measures a basket of goods that a household may buy, housing costs, and energy costs. In April 0f 2021, it increased 4.2% from April 2020. The average household’s expenses went up 4.2%—which is a <em>lot</em>.</p> <p>Did you get a 4.2% increase in earnings during the same time? Unlikely. Many retirees live on a fixed income, such as a pension. The most dangerous retirement risk is trying to use a fixed income for 30+ years of retirement. Your cost of living will double if not triple. It’s financial suicide. </p> <p>Your electric bill, utilities, groceries, healthcare, etc. all rise 2–4% every year. But your income stays fixed. The huge challenge is to come up with a retirement income that exceeds the cost of living. People are finally starting to see the impact on their lifestyle. It’s becoming so expensive to live and pay bills. You have to be aware of this. It won’t change, it will always be there