New York Times: “How to Beat Retirement’s Nemesis — Inflation”
Even if you’re a retirement supersaver, inflation is always lurking like a chronic, incurable disease, eroding retirement benefits that often fail to keep up with the rising cost of living.
To many families, inflation’s effect on their nest egg is a taboo subject — if they think about it at all — because it raises the ugly prospect of outliving their savings. This year, it’s something no American of any age can ignore. U.S. inflation is rising at its fastest pace in roughly three decades, with consumer prices climbing 6.2 percent in the 12 months through October.
As a certified financial planner and chief executive of Blue Ocean Global Wealth in Gaithersburg, Md., Marguerita Cheng has taken steps to protect the nest egg of her mother, Eileen, 75, against steady price increases. The groundwork was laid by her late father, Paul, who fled Communist China as a teenager and built a prosperous career with IBM, accumulating a pension, life insurance policies and diligent savings.
“Dad didn’t want us to anguish and scramble when he died,” Ms. Cheng said. “He even waited until he was 70 to collect the largest possible Social Security and survivor benefit.”