As you know, inflation was big news in 2022 And while it may cool off in 2023, it’s still something to consider as you work toward your longterm goals.
If you’re still working, and you can afford to boost your contributions to your IRA and 401(k), try to do so. The more resources you’ll eventually have available in retirement, the better protected you’ll be against inflation.
You might also want to work with a financial professional to develop scenarios showing how different rates of inflation could affect your portfolio, and how you could adjust your investment mix in response.
If you’re already retired, you might consider doing some consulting or parttime work. With the added income from employment, you may be able to reduce the amount you take out from your retirement accounts, which could make them last longer.
Also, by doing some type of work, you could possibly delay taking Social Security — the longer you wait, the bigger your monthly payments, although they will max out once you reach 70. We’ll always have to deal with some level of inflation — so it’s a good idea to be prepared.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC