Inflation Math for Today’s Retiree
Provided by MidAmerica Financial Resources
You may have heard the saying, “inflation hurts savers and benefits borrowers.”
The expression suggests that borrowers benefit from inflation because they pay back lenders with dollars worth less than when the money was initially borrowed. But for savers, your hard-earned dollars may lose buying power over time.
One popular way to show the “hurts savers” illustration is with retirement calculators. A fixed amount of money will lose buying power at a much faster rate if inflation averages 7% versus 1% over an extended period.
That’s one reason why we caution against using some online tools. You can plug in a set of numbers, and the results may take you by surprise. They often raise more questions than answers.
If you’re concerned about inflation, please reach out, and we can help put today’s inflation in a better perspective.
MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@lpl.com www.mid-america.us
Securities and advisory services offered through LPL Financial, a Registered Investment Adviser, Member FINRA/SIPC.
MidAmerica Financial Resources and Malan Financial Group are separate and unrelated companies to LPL.
This material was prepared by MarketingPro, Inc. for use by MidAmerica Financial Resources.
