Protect the purchasing power of dollar with a financial plan developed with the financial advisors at Walton Financial Group Inc!
The Walton Financial Group in Barrie, Ontario will help you with a financial plan to manage the effects of inflation
Expressed as an annual percentage, inflation is an important measure of the purchasing power of the currency of a nation and has implications on the cost of living of individuals and the overall pace of economic growth.
If you have gone grocery shopping or filled your gas tank lately, you have most likely experienced the effects of inflation firsthand. Inflation is a measure of the rate at which the price of goods and services in an economy increases over a period of time. When prices begin to rise, your money buys less.
THE IMPACT OF INFLATION can be a serious problem. Investors who earn less than the rate of inflation on their investments are challenged by reduced purchasing power when the investments are converted back to cash. Over the long term, this means that the cost of a comfortable retirement may keep climbing.
Canada’s current inflation rate is the highest it has been in almost 20 years. Anyone saving to purchase a home, fund their children’s education or retirement will almost certainly find that the real return on their investment won’t keep pace with the increased cost to fund their goal. Practically speaking, this means investors need to save more or achieve a higher rate of return on their investments to offset inflation.
It is very important to have the guidance of an experienced financial planner to mitigate the effects of inflation on an investment portfolio and your savings. No one can completely avoid the effects of inflation. However, a sound investment strategy as part of your financial plan can guard against inflation and help maintain your purchasing power and standard of living in retirement.
Contact a financial advisor at the Walton Financial Group in Barrie, Ontario to arrange for a financial planning consultation or learn about the impact of inflation and how you can manage.
