President Ronald Reagan famously said, “Inflation is as ferocious as a robber, as terrifying as an armed robber, and as deadly as a murderer.”
You know exactly what he meant because it hits you where it hurts.
Every dollar you save for retirement isn’t worth as much as when you put it in a savings account. We feel pressure every day as the cost of everything continues to rise.
Remember when you could fill up at the gas station for $10 or $20?
And how much did you pay for your first car? What about your first home? And how is that different from the amount needed to buy a new car or house today?
What about groceries? Or is it an area where rising medical costs are literally a matter of life and death?
Inflation affects everyone. But if you’re retired or nearing retirement, it can be financially devastating. Because when you’re living on a fixed income, every dollar you spend feels like a much bigger loss. You can’t rely on your next paycheck or future wages to make up for it.
Therefore it is not surprising investment news We shared an eye-opening financial safety report from a Northwestern Mutual study. “An unprecedented number of Americans are reporting increased financial anxiety,” said author Leo Almazola. Inflation continues to wreak havoc on the economy and personal finances.
The survey found that only 9%, or less than 1 in 10 Americans, said their household income was outweighing rising costs.
Put another way, 9 out of 10 Americans feel that we are falling behind and losing the fight against inflation.
Recent Gallup poll Agreed.
More Americans are concerned about inflation now than at any time in the past 20 years. When asked about the economy and personal finances, four in 10 cited inflation as their biggest concern.
Therefore, inflation is a serious problem for everyone.
And it becomes an even bigger problem for the next wave of retirees. So we reached out to Utah retirement advisors Tyson Thacker and Ryan Thacker of BOSS Retirement Solutions for advice on how to protect your retirement plans from this insidious threat.
They are five-time Utah State of the Year winners. And since 2008, they have helped thousands of families plan for their retirement.
Inflation is as violent as a robbery, as terrifying as an armed robbery, as deadly as a hitman.
-Ronald Reagan
“It boils down to this,” says Ryan Tucker. “Yes, inflation has gone down, but it’s not going away. The price increases we’ve seen over the past few years will continue. And if your retirement financial plan doesn’t account for inflation, you We could end up in a situation where we could be in serious trouble in just a few years. ”
As a basic rule, the Thackers say you should plan to double your income every 20 years to keep up with inflation. Therefore, you need to incorporate this into your financial strategy.
“If you’re lucky enough to have 10 or 20 years of retirement, you can’t just look at today’s prices,” Tyson Tucker explains. “We have to take into account tomorrow’s price increase.”
Social Security checks have lost nearly 40% of their purchasing power over the past few decades.
–Ryan Thacker, BOSS Retirement Solutions
“We can’t rely on Social Security and think everything will be fine,” the Hackers stress.
“Yes, cost-of-living adjustments to Social Security should offset inflation,” says Ryan Tucker. “But it’s not working. According to Forbes, Social Security checks have lost nearly 40% of their purchasing power over the past few decades. There’s no reason to believe that’s going to change.”
“In fact, things could get much worse,” Tyson-Tucker added. “The Social Security Trust Fund is projected to run out of money within 10 years. In 2035, there will only be enough money to cover 78% of promised benefits.”
So if you’re retired or nearing retirement, what can you do to protect your hard-earned savings from inflation?
The Tuckers emphasize the need for a diverse approach, which they describe as “layers of planning.”
“The stock market has historically delivered returns that outpaced inflation,” explains Ryan Tucker. “But that long-term performance also comes with short-term risks. So going all-in on stocks can be very risky. Other assets such as commodities and real estate protect against inflation. They can help protect people, but they also come with their own challenges.”
“There are other opportunities for more stable income for retirees,” Tyson-Tucker says. “There are ways to reduce your taxes in retirement, potentially saving a small fortune and offsetting the burden of inflation. So it’s important to have a multi-layered plan that can provide the stability, growth, and inflation protection you need. It’s about building.”
The key is to build a multi-layered plan that provides the stability, growth and inflation protection you need.
–Tyson Thacker, BOSS Retirement Solutions
There is no one-size-fits-all solution. Whatever plan you create, it needs to fit your schedule, risk profile, current assets, and retirement goals.
This is one of the reasons Thackers developed the BOSS Retirement Blueprint.
This blueprint is customized to your specific situation and covers the most important pieces of the retirement planning puzzle, including inflation, taxes, Social Security, medical expenses, income, IRAs, 401Ks, and more. Masu.
Having this plan in place can be the most important tool you can use to make more money for your retirement.
Many financial advisors charge upwards of $4,000 for such customized plans. However, BOSS Retirement Solutions is currently offering a limited number of free plans to KSL.com readers on a first-come, first-served basis.
To schedule your first analysis to maximize your retirement savings potential, Request your analysis online here.
These strategies are best suited for families who have at least $200,000 saved for retirement.
About the author: Tyson and Ryan Tucker are CEO and President of BOSS Retirement Solutions. They are a five-time Utah State of the Year winner and have six offices throughout the Wasatch Front.
This is for illustrative purposes only and your results may vary. Advisory services provided through his BOSS Retirement Advisors, an SEC registered investment advisory firm. Insurance products and services offered through BOSS Retirement Solutions. The information contained in this material is for informational purposes only, and nothing contained herein constitutes tax, legal, or investment advice. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet an individual’s specific needs. For legal and tax questions, you should seek the advice of an independent attorney or tax advisor. BOSS is not affiliated with the U.S. government or any government agency. Marketing materials provided by Infinity Marketing Services.
BOSS submitted an application and paid the fee as a candidate for the Utah Award of Excellence. The award results are determined independently by the awarding organization (https://www.bestofstate.org/about.html) and information provided by BOSS. BOSS received the Utah State of the Year award in 2019, 2020, 2021, 2022, and 2023.