Brian Decker with Decker Retirement Planning joined ABC4 Utah today to talk about Inflation and why the government is OK with targeting at least a 2% inflation rate.
Inflation is a way that a debtor country can repay the Trillions that we owe with “less expensive” dollars. For Example, if I borrow $100 today when cars cost $20K and homes cost $600K and milk is $4 per gallon and repay it 10 years from now when cars cost $30K, not $20K, homes cost $800K, not $600K and milk is now $6 per gallon, not $4, are you better off, even if you charged me 3%?
Inflation is a tool for debtor countries to repay loans with less valuable dollars. It hurts retirees since a retiree took their last paycheck years ago and needs their income streams to be enough today, 10 years from now, 20 years from now, and so on. Are you hedged against inflation?
If you want to learn more about protecting yourself against inflation, you can go to the Decker Retirement website and get your free Safer Retirement toolkit. The free toolkit includes 2 books and a sample income plan to help you learn more about what your retirement could look like and it also includes a section dedicated to the topic of inflation.