Stay Ahead of Inflation
You can’t control inflation, but you can take steps to help manage its negative impact on you and your investments. Explore the various effects of inflation and the different strategies available to counteract it.
Inflation /
Assess the Risk of Inflation on Your Finances
Inflation Means Your Money Will Buy Less in the Future
Counting on that $100,000 in savings? The loss of purchasing power from inflation can mean you need to withdraw more money than planned to cover the higher cost of living.
Here's how inflation guarantees your money will buy less in the future.
How Inflation Affects Purchasing Power
Even low inflation gradually eats away at your money. As our inflation calculator shows, at just 3%, a $100,000 investment will lose almost a quarter of its purchasing power over 10 years. At 6%, it could be cut in half.
See how inflation could affect your current portfolio.
How Does Inflation Affect the Markets?
Financial markets hate uncertainty. And uncertainty spikes when inflation is rapidly rising. Specifically, people worry about the Federal Reserve's ability to control inflation without slowing economic growth too much.
When uncertainty is high, the markets see large price swings. And these swings—also known as volatility—can play into our emotions and decision-making.
Make Better Decisions by Avoiding Behavioral Biases
How Inflation Affects Our Emotions—and Investing
Are you your own worst enemy? Our perceptions and biases can lurk under the surface—preventing us from taking the right actions.
But there are steps you can take to make better decisions for your financial situation.
Explore Behavioral Investing Insights
Take Action
Look to Inflation-Hedging Investments
It’s a tricky balance. If you invest too aggressively on a short time horizon, you risk losing money that you’ll need for the future. But if you invest too conservatively, your money may not grow enough. Finding the right balance is key to staying ahead of inflation.
What's Your Goal?
Ready To Act or Not Sure of Your Next Steps?
Request a call or call your financial professional.
General Disclosures
There is no guarantee that the investment objectives will be met.
Diversification does not assure a profit nor does it protect against loss of principal.
The information is not intended as a personalized recommendation or fiduciary advice and should not be relied upon for investment, accounting, legal or tax advice.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
Historically, small- and/or mid-cap stocks have been more volatile than the stock of larger, more-established companies. Smaller companies may have limited resources, product lines and markets, and their securities may trade less frequently and in more limited volumes than the securities of larger companies.
International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
Fixed Income Disclosures
Investments in fixed income securities are subject to the risks associated with debt securities including credit, price and interest rate risk.
Generally, as interest rates rise, the value of the bonds held in the fund will decline. The opposite is true when interest rates decline.
The lower rated securities in which the fund invests are subject to greater credit risk, default risk and liquidity risk.
Credit risk is the risk that an obligation won't be paid and a loss will result. Generally, a lower credit rating indicates a greater risk of non-payment. Liquidity risk is the risk that the fund will have difficulty selling its debt securities.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investment Services, Inc.
Mutual Funds: American Century Investment Services, Inc., Distributor.