Retirement Requires a New Perspective on Wealth and Income

Retirement Requires a New Perspective on Wealth and Income Cornerstone Wealth Management

Retirement Requires a New Perspective on Wealth and Income Cornerstone Wealth Management

Last year at this time, you may not have worried about market downturns or cost-of-living increases, but with market volatility and inflation threatening retirement plans this year, it’s important to make sure you know your options when it comes to protecting your wealth, earning income, and knowing the difference between both.

Keeping Your Income at Pace with Inflation     

Income is the basis of how we cover our costs of living. But when inflation causes prices to rise, the fixed income you may have been receiving or planned to receive in your retirement might not stretch as far as you thought. Unfortunately, you can’t stop inflation, but you can prepare by talking to your financial advisor to see how you can adjust your income streams.

A common strategy used by retirees to adjust their income to match inflation is incorporating Treasury Inflation-Protected Securities (TIPS) into their portfolios. TIPS pay out interest distributions based on current Consumer Price Index data, which tracks inflation. For some, these can be a great way to maintain income on pace with inflation. Another investment vehicle to ask your financial advisor about is annuities. An annuity is an insurance-based financial product designed to provide you with guaranteed income.

However, income isn’t the only thing to be aware of when it comes to weathering inflation and market volatility.

Protecting Your Wealth

Protecting your wealth can be a different challenge than earning income. If you’re looking to protect your wealth from taxation, transferring your investments into a vehicle that gives you taxable income may be counterproductive. There are better ways to store and protect your wealth without paying income tax on it.

If you’re more concerned with seeking wealth protection than covering costs of living, consider talking to your financial advisor about including new asset classes into your portfolio. Although past performance doesn’t indicate future results, there are certain wealth-protecting strategies that have served retirees well during inflationary or volatile periods. Ask your advisor about other strategies to deal with inflation. In addition, precious metals such as gold and silver are also asset classes that have historically worked well for retirees in volatile markets.

But this conversation only scratches the surface. There are so many ways in which you can address these issues, and a fiduciary financial advisor will have professional advice for you that is tailored to your specific financial situation and goals. So, Click here to schedule a talk with us today to get your assets one step closer to meeting your financial goals.


The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation. This content was created by Lone Beacon.

Registered Representatives offer securities through Independent Financial Group, LLC (IFG), Member FINRA/SIPC. Investment Advisor Representatives offer Advisory services through Independent Financial Group, LLC (IFG), a Registered Investment Adviser. Cornerstone Wealth Management, Cornerstone Tax Advisory and IFG are unaffiliated entities.

No investment strategy can guarantee a profit or protect against loss.

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