4 Ways in Which Senior Citizens Can Invest For Inflation

4 Ways in Which Senior Citizens Can Invest For Inflation

Inflation can have a significant impact on elderly individuals, especially retires who are living on reduced or fixed income. Besides, inflation can have a very big impact on your investment. Knowing how to invest for inflation is something that everyone aged 65 years and older should be interested in 2020 medicare supplement rates https://www.medicaresupplementplans2020.com/So, how can you invest for inflation and protect your investment and money from any possible runaway inflation? This is the one million dollar question. There are several ways to invest for inflation. Let’s take a look at some of them.

  1. Investing in stocks

As you age, you may become more risk averse. You no longer want to gamble with your money but you want to adventure into projects that you are sure will guarantee you good returns. The best way to avoid the effects of inflation is to invest in stocks. This is because stocks prices normally keep up with the rate of inflation. Therefore, you should invest some of your savings in stock mutual funds or in stocks for you to protect yourself against inflation. Oil and gold are some of the commodity stocks that usually perform well during the times of inflation.

  • Investing in real estate

Investing in real estate is another great way to invest for inflation. This is because real estate usually rises along with the inflation. Apart from owning your own home, using part of your savings to buy houses and plots will give you an advantage against inflation. For instance, if you have rental property, you will be able to increase rents as the inflation increases.

  • Investing in bonds

 Bonds are considered to be some of the safest investments. However, most bonds usually lose value as the inflation increases. But there are some bonds that typically keep up with inflation. For example, treasury inflation-protected securities (TIPS) are bonds that generally keep up with the inflation.

  • Annuities

Annuities can offer you protection against inflation. In case you don’t know, annuity is simply “retirement insurance”. All you need to do is pay a premium. In that way, you will start getting a fixed monthly payment at the end of a specified term. You can choose variable annuities or fixed annuities. Fixed annuities are normally the best option because they attract lower fees. Furthermore, you don’t have to worry about too much about the basic assets. Variable annuities usually offer very high returns when the market is doing well. However, they are usually complex investments and they are associated with higher fees.