Advice: Even Mild Inflation Should Scare You
Inflation and Your Retirement Plans
Tim McMahon of InflationData.com keeps track of these historical inflation statistics, with an amazing array of online charts and calculators. One calculator lets you figure out the total rate of price inflation between any two dates from 1914 to the present.
Perhaps the most useful feature of the site is a retirement inflation calculator. It allows you to calculate the impact of inflation on the spending power of your retirement dollars over the years.
Suppose you retired with $1 million at age 60 this year. Assuming that amount, conservatively invested, earned 5% annually, you would think it would be plenty to support you for the rest of your life.
Think again. Just 25 years later, your assets would be worth only $359,245.36 in buying power. And since you could be depleting those assets over your lifetime, you might very well find yourself with little or no buying power as you live longer, and inflation continues, or increases as markets are now predicting. We live in dollars, shop in dollars, invest in dollars, and retire in dollars. But we very rarely think about hedging our dollar bets -- something the rest of the world is doing in a dramatic way. They'd rather have euros, or gold, or corn and soybeans than hold on to U.S. dollars. The U.S. Dollar and Global Prices Foreigners recognize that the U.S. continues to go into debt, continues to create more "liquidity," and now is penalizing dollar-holders by keeping interest rates low, as the Federal Reserve struggles to keep the financial services sector alive and the economy from falling deeper into recession.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV