Page 3 - Inflation -The Killer of Your Retirement Savings

Now that the effects of monetary and fiscal stimulus have worn off, we’re seeing what the results are of all that massive government spending, and
it isn’t pretty. Trillions of dollars created out of thin air gave the illusion of prosperity when everyone was receiving government checks. But now that the money is long gone and prices are rising, tapped out households are having to resort to taking out loans to pay for basic necessities like food.3
Many investors are wondering whether the savings they have worked decades to build up will last them through retirement. The Federal Reserve gambled that it could allow inflation to rise without any negative consequences. And once inflation began to rise, the Fed first tried to deny that it was happening, then called it “transitory,” and finally said that it could get inflation under control. But thus far that hasn’t happened.
You and your retirement savings are guinea pigs in the Fed’s monetary policy lab, and the pain you suffer as the purchasing power of your savings gets eaten away will likely form the basis of case studies in future economics classrooms. But that’s of no comfort as you watch the value of your money wilting away, as you wonder whether you’ll ever be able to undo the damage the Fed has done.
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