Commentary
Inflation hurts consumers—that’s obvious—but what about retired people? If you are on a fixed income and the price of consumer goods continues to rise, your purchasing power drops. If you are no longer working (or no longer able to work), how can you generate more income to compensate for the loss of purchasing power? Maybe you can wait inflation out, but what if inflation lasts for years and years? It is quite the conundrum. If you live off investments, the first thing you can do is recalibrate your investment strategies. With inflation, the value of cash diminishes, and your investments stand the risk of not holding their value. While blue-chip equities often hold up well against inflation, it doesn’t help much when equities are crashing….