Recent spikes in inflation are thought to be a temporary result of an unbalanced economy due to the pandemic, but are expected to return to a normal rate by 2022. However, While the bond market helps to produce forecasts on inflation for the coming decades, there is no way to be certain of what lies ahead, and despite the recent rise in economic growth, the market continues to remain volatile, and experts are warning wealthy taxpayers to prepare for a rise in taxes.
Inflation affects everyone differently, with age being a very important factor. Those who are still early on in their career have more time to add to their portfolio, plan for their retirement, and will therefore be less affected by any immediate changes to inflation. However, for those that are nearing the end of their careers, it can have a substantial impact on your retirement plans if not accounted for. Those who are closer to retirement are typically more risk-averse, and usually, by this point, the portfolios are made up of more fixed-income assets, which offer less risk over a shorter period of time.
To help reduce your risk of being affected by inflation, it is strongly advised that you seek expert advice to ensure the best course of action. Our financial advisors work with you to create a retirement plan that is specific to your short and long-term financial goals.
Reach out to one of our expert advisors to get more information on retirement plans for doctors here.
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