By Debbie Placke, Vice President, Manager, Financial Planning Tools and MarketingPrint This Post
Purchasing power has stayed fairly stable over the last decade, but for anyone who has lived and invested for 30 or 40 years, the effects of inflation on your savings are more prominent. Are your savings dollars hidden away in a coffee can for protection or maybe a safe bank account? If so, inflation may be eating away at those dollars. The coffee that was made from the grounds in that can averaged a dime a cup within living memory. Today the price for a hot cup of joe is closer to two dollars. That means that the dime that you put in the can 40 years ago, can’t even buy you a sip of coffee today. Cash will lose value over time, so savings must provide some growth to stay ahead of the inflation curve.
Structuring a diversified portfolio is important to both balance risk and meet future goals. Ask your Benjamin F. Edwards & Co. financial advisor to help you answer questions such as: “How much risk is right for me?” and “What do I need to do to stay ahead of inflation?” You should feel comfortable with your nest egg while sleeping peacefully at night knowing that you are on the right track heading into your future.