Navigating the Unchartered Waters of Inflation: How Financial Advisers Can Help You Protect Your Finances and Retirement

  • Updated
Menlo Asset Management

Inflation continues to impact people across all demographics, and financial advisers have become increasingly important in helping individuals protect their finances and retirement. Inflation's effects, including rising prices of everyday necessities, healthcare, and housing fees, have made a significant presence felt. As we move further into 2023, experts expect inflation costs to continue rising, highlighting the importance of adopting a sound economic plan.

Furthermore, inflation can be particularly problematic for retirees and those approaching retirement. According to a survey conducted by the Employee Benefit Research Institute, more than half of retirees worry about their ability to pay for healthcare and other expenses as they age. Inflation can erode the value of retirement savings over time, making it challenging to meet rising expenses in later years.

With inflation rates expected to rise further in the coming years, it is essential to have a robust retirement plan considering inflation. According to the Bureau of Labor Statistics, the US Consumer Price Index rose 0.9 percent in March 2022, the largest one-month increase since 1981. The inflation rate has steadily risen over the last few months, posing a significant challenge to financial planners.

Financial planners can help people navigate the impact of inflation on their finances, particularly those in vulnerable demographics. For example, low-income individuals and fixed-income individuals may struggle the most with rising inflation rates. Financial advisers can help people in these situations develop a plan to protect their finances and ensure they are prepared for future challenges.

Additionally, individuals planning retirement can get assistance from financial planners by developing a plan that considers inflation. Retirement planning can be challenging, especially when faced with rising inflation rates. Financial advisers can help people build a retirement plan that factors in inflation, ensuring their retirement savings will be sufficient to meet rising expenses.

Navigating the impact of inflation on personal finances requires professional guidance and a sound financial plan. Financial advisers can help people develop a plan that considers inflation and protects their finances from the effects of rising costs. With the help of a financial adviser, individuals can be better prepared to face the challenges of inflation and secure their financial future.

Inflation's impact on different demographics may vary, and financial advisers can provide personalized guidance to help individuals navigate their unique situations and mitigate the impact of inflation. One way to protect investments against inflation is to invest in growth-oriented alternatives, such as stocks, mutual funds, variable annuities, or other vehicles. These options have historically offered returns that outpace inflation rates over the long term. However, it is essential to remember that there are no guarantees, and past performance is not a reliable indicator of future results.

A well-diversified portfolio, including these growth-oriented options, can help individuals outpace inflation. Diversification helps spread the risk across different asset classes, reducing the impact of inflation on any one investment. Additionally, investors should regularly review their portfolios and adjust their investments as needed to ensure that they remain on track to achieve their long-term financial goals.

Menlo Asset Management is a boutique wealth management firm that provides personalized financial advisory and insurance brokerage services to clients in all three key areas of their financial life: investment, retirement planning, and insurance. The firm's team of experienced financial advisers helps clients review finances, provides expert guidance on spending, investments, and risks, and ensures their financial well-being. Their services are customized, with client interests at the forefront of all recommendations.

Surviving inflation demands a comprehensive financial and retirement plan. Engaging a professional financial adviser and investing in growth-oriented alternatives can help individuals outpace inflation and secure their financial future. Whether looking to protect investments or plan for retirement, financial advisers are the key to securing your investments and planning for retirement. If you want to learn more about securing your financial future, you can contact Menlo Asset Management for further information.

This article was first published on May 17, 2023