“They gave you all that money to answer questions they knew you knew… now, that’s inflation!”
– Quiz Show, 1994
Inflation has averaged about 2.2% since the turn of the century but in a recent forecast, Kiplinger’s predicts a .6% increase in 2018 compared to this year. These fluctuations in inflation might seem inconsequential to your retirement planning. Don’t be fooled. Eileen Ambrose and Sandra Block recently explained that even if “inflation seems tame…modest inflation will significantly erode your purchasing power over time.”
If your company’s 401(k) or qualified retirement manager has not talked with employees about inflation, contact one of BenefitCorp’s specialists. Whether its fund strategies or how do handle bond income, there are tax implications and other shelters that can pay huge dividends to workers. Inflation kills purchasing power over the long term so a corporate investment advisory should be advising for the long term.