Investors! Don’t let inflation deflate your investment returns. While you are focused on minimizing risk, remember that inflation can eat away at certain returns. If your portfolio primarily consists of low-risk assets, your retirement income and spending power will take a hit when prices are high. Investments like CDs, High-Yield Savings Accounts, and Money Market accounts are known to underperform when inflation skyrockets. 

Any investment designed to create modest to moderate returns while protecting the original investment from risk can be greatly impacted by inflation, even Fixed-Indexed Annuities. As you may know, at Alloy Wealth, we believe that FIAs can play a useful role in generating income in retirement. Yet we recommend the insurance product as part of a balanced portfolio. And we education our clients to understand that FIAs come with choices. For example, a rider may allow withdrawal rates to increase to keep up with inflation. This is where “DIY” or self-directed investors miss opportunities for growth.

To truly understand the nuances of complex investment options requires education, training, and experience. Our Alloy Investment Managers have a fiduciary duty to help clients preserve and build wealth. They know which assets commonly perform well during inflation and make recommendations based on each client’s financial goals, risk tolerance, and timeline. We won’t let inflation deflate your investment returns. Contact Alloy Wealth at 800-689-3935 to schedule an appointment.