Duration: 2:17
Managing Director Lance Gunkel provides three tips to reduce the impact of inflation on your personal finances.
Consider a delay in taking your social security benefit if you are near retirement age and can afford to do so. Benefits taken beyond the full retirement age increase the social security benefit by 8%. Additionally, Social Security inflation increases are tied to the Consumer Price Index – a measure of inflation.
If you are leasing a car, evaluate and contemplate buying the car. Because the vehicle lease-end price is set at the beginning of the lease, you’ll be purchasing a car at an inflation-free price.
Plan for expected purchases and watch for sale prices. This strategic purchasing will take some planning, but can offer considerable savings.
Finally, it is inadvisable to add Treasury Inflation-Protected Securities (TIPS) to your portfolio when it is expensive. If inflation is already present, it’s less likely that inflation will surprise on the upside, which is what would need to happen for TIPS prices to continue to rise.
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Finance Moment…Syverson Strege’s mini-podcasts to provide rapid-fire information on financial topics of the day.