Joe Lucey

One of the difficulties people faced during the recession was the high level of unemployment. However, a long-term benefit is that some people became more flexible about what they were willing to do to earn a living.

College-educated millennials accepted unplanned forays into things like bartending, graduate school and opening their own small businesses. Many midcareer professionals who lost their job went back to school to study in a different field, thus launching the concept of pursuing two or more careers in a lifetime.

This lesson wasn’t lost on baby boomers; plenty of mature workers seized the opportunity to expand their knowledge and pursue a new career path. In fact, learning is one of those things that doesn’t have an age limit. College towns are generally considered great places to retire, where seniors enjoy a wide range of activities from auditing classes and guest lectures to attending cultural events to using the campus gym.

If you check out your local library, you’ll likely find a plethora of courses available in the community such as computer lessons, religious studies, arts and drama activities. If you don’t want to leave home, check out the wide range of options available online, such as the popular Master Class series that offers video courses taught by knowledgeable professionals and even celebrities.

Retirement is a great time to pursue an activity you have always been interested in and further your education. Lifelong learning opportunities also give older adults a way to meet other people with shared interests and create a regular schedule of activities and social engagement.

Most people have a subject they’ve always wanted to learn — how to play the guitar, dance the Tango, speak French — but were always too busy to truly pursue it. A great benefit of retirement is the time that’s available to finally help make those goals a reality.

Inflation appears to be moving up in some developed countries. In the U.S., inflation is measured by the consumer price index, which tracks the prices of about 80,000 items each month. 

This includes our most common household groceries such as cereal, milk, coffee and wine.

In Great Britain, economists have a similar measure called the retail prices index. Due largely to a rising number of small distilleries in the past few years, the Brits recently added gin to its monitored shopping basket.

After years of consistently higher sales, gin has joined the ranks of other British staples in tracking higher prices, thereby earning the moniker “ginflation.”

There are a lot of positives in economic growth, but one downside is the inflation that sometimes comes with it. An increase in the GDP rate, consumer prices and, inevitably, interest rates often follow as well.

In recent months, we’ve seen a jump in gas rates; home prices are rising at the quickest pace in nearly 10 years; and the rising cost of medical care — which had slowed down until this year — is back on the ascent. While today’s global markets and automation technology help keep price increases down on most consumer goods, inflation can still impact the long-term purchasing power of a conservative retirement portfolio.

That’s why some investors incorporate securities touted as “inflation busters” because they can provide ongoing income growth but are still considered low-risk instruments. Inflation-busting portfolio options could include:

• Treasury inflation-protected securities (TIPS) — Government-issued bonds that adjust principal value each month to align with inflation (or deflation).

• Floating-rate fund — This type of fund typically invests in variable rate bank loans issued to companies with substandard credit ratings. Because the interest rate adjusts according to a short-term benchmark, they offer ongoing income opportunity.

• Stocks as an asset class have historically outpaced the rate of inflation in the long haul. Yet some sectors weather an inflationary environment better than others. For example, the energy, industrials and materials sectors generally outperform more interest rate-sensitive sectors such as utilities and telecommunications during periods of rising inflation.

• Real estate has long been recognized as an inflation hedge, but some retirees don’t want to get into the business of being a landlord. One way to potentially reap the gains of real estate income without a direct investment is to explore the benefits and risks of a real estate investment trust (REIT), REIT mutual fund or REIT ETF.

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

Financial advisors used to refer to retirement income as a “three-legged stool.” This meant that the stool was supported by:

• (1) Social Security benefits,
• (2) an employer pension plan or other employer-sponsored plan and
• (3) personal savings/investments. Today, retirement income is less reliable because fewer employers offer pensions, and employees have not been able to save as much due to stagnant wages and high levels of debt.

One approach to building a retirement income strategy today is to visualize it as a “four-legged stool.” This is comprised of the three components mentioned above, plus a guaranteed income annuity. To create that fourth leg, an individual may need to reposition a portion of funds from other retirement accounts. However, while the retirement stool may be shorter than in years’ past, that fourth leg can help offer a bit more stability and confidence in your retirement income plan.

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.