With Halloween approaching, many retirees are still haunted by the same fears from last year- rising inflation and market volatility. But now, there’s another specter looming over retirement plans: the upcoming election. The uncertainty around potential policy changes adds another layer of complexity to an already tricky financial environment. And let’s not forget the looming tax increases in 2026, which will only add to the stress.
The double whammy of inflation eating away at purchasing power and market downturns reducing retirement account balances has left many retirees spooked. Imagine losing 1/12 of your purchasing power to inflation while your retirement portfolio drops 20-30%. It’s a frightening scenario for even the most prepared individuals. What’s even scarier is that the withdrawals retirees make during these downturns won’t benefit from the eventual market recovery. That money is gone, and worse yet, you may withdraw more than planned just to cope with inflation.
Now, with the 2024 election right around the corner, retirees are also worried about potential changes in tax policies, retirement benefits, and financial regulations. While we don’t know exactly what will happen, one thing is certain: uncertainty can be financially draining if not planned for properly.
What Can You Do?
You can’t control the market or inflation, but you can take steps to minimize their impact on your retirement. One approach is to focus on income planning rather than just investment returns. With a solid income plan, you can create a steady stream of income that covers your fixed expenses, and some of it can even be tied to market recovery when conditions improve.
A well-structured income plan can help offset inflation’s impact, allowing you to live more comfortably while minimizing the need for large withdrawals during market downturns. This strategy ensures that short-term needs do not disrupt your long-term investment growth.
In 2024, it’s even more critical to revisit your retirement strategy given the upcoming election, the 2026 tax changes, and the financial headwinds from inflation and market volatility. Planning your income around these challenges will help you face retirement with confidence rather than fear.
Take Action Now
As a Certified Financial Planner™, I work with clients to build customized income plans. We start by reviewing your budget, recreating your paycheck in retirement, and investing any surplus for long-term growth. This strategy helps reduce the financial uncertainty caused by inflation, market volatility, and future tax increases.
Don’t let the fear of the unknown keep you from enjoying your retirement. Schedule a free, no-obligation consultation with my assistant, Morgan, and let’s build a plan that makes your financial future a little less scary.
Morgan.wylie@retirerm.com
(828) 559-0299
Steve Gaito, Certified Financial Planner™