Retirement can seem like the pot of gold at the end of the rainbow, but this pot of gold is real! It’s a pot that you’ve tended to over the years, slowly but surely filling it up with your personal savings and contributions to your Lockheed Martin 401(k). This is the pot of gold that’s supposed to supplement your pension throughout retirement. But what happens to your total retirement income, pension, and supplements, when inflation occurs? That’s what we’ll examine today.
Inflation by definition is a general increase in prices and fall in the purchasing value of money, according to the Oxford Languages, or the decline of purchasing power of a given currency over time, according to Investopedia. Inflation affects your retirement income by increasing the future costs of goods and services, which then reduces the future purchasing power of your income. Even a low inflation rate can have a significant impact on your purchasing power. Take a look at the chart below to see how inflation at 2%, 3% and 4% can affect $50,000.
There’s good news and bad news. Let’s get the bad news out of the way first. The bad news is that your Lockheed Martin pension is a set dollar amount, and it does not increase over time. So, a pension amount of $50,000 today is still $50,000 in 25 years, but that $50,000 doesn’t go as far as it did 25 years earlier, as you can see from the chart above. The good news is that your supplemental pot of gold, your personal savings, investments, and 401(k), do increase if you have them invested properly. Investments like growth-oriented stocks, mutual funds or ETFs, Treasury inflation-protected securities (TIPS), real estate securities, and commodities are some types that may need to be considered in your portfolio.
To know if any of these types of investments are right for you, you should speak to one of our Lockheed Martin specialists, who can examine your overall portfolio and analyze your personal situation then make recommendations that will help you fight inflation and keep your pot of gold intact. Call us today at 817-210-3444 or click HERE to book a complimentary consultation!
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Be sure and check back next week for more incredibly valuable information. Cheers!
Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.
This blog is being provided and sponsored by Strittmatter Wealth Management Group, LLC. Lockheed Martin and its subsidiaries do not endorse, recommend, or make representations with respect to any information, advice, services, or products discussed in this blog.
Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.
Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.
SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.
Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.