Three Ways to Protect Your Purchasing Power

A market crash hits all at once, and usually recovers. Inflation is the opposite: a slow, steady chipping away at what your money can buy, so gradual you barely notice it until years have passed. At just 3 percent a year, the cost of your life roughly doubles over a typical retirement.  In this episode, Mark Rowlette and Damon La Tanzi of South Shore Retirement Services walk through three practical ways to keep your purchasing power from slipping. First, keep some growth in your portfolio and understand your real rate of return- what you're actually earning after inflation, not just the number on the statement. Second, knowing which of your income sources adjust for inflation and which don't, and being thoughtful about when to claim Social Security. Third, building flexibility into the plan- the breathing room to spend more in a pricey year and pull back in a calmer one, plus simpler levers like substituting one trip for another, staggering a couple's retirement dates, or a bit of part-time work.  They also make the case for figuring out your own personal inflation rate rather than reacting to the headlines, since a long commuter and a homebody feel rising gas prices very differently.  If you'd like to see how your plan holds up against rising costs, visit southshoreretirementservices.com or call the office at 781-725-5557.