Inflation Archives - Annuity 123 : Annuity 123

A Look Inside Wall Street

Erick Jon Arnett | January 14, 2015 | Annuity Basics, Income For Life, Inflation, Retirement Planning

So consider this source: I am an independent advisor, and I have been in the industry for 15 years. I have worked for big banks, small banks, a retail brokerage, fledgling hedge fund managers, registered investment advisory firms, and now I am completely independent and objective. I have seen it all and have had exposure to almost every tool or investment product that exists out there. I don’t say this to brag by any means. There are probably far smarter and better experts (as they...

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Retirement 101: Planning for FV=PV(1+i)t3

Chad Golseth | August 28, 2014 | Inflation, Retirement Planning

So the title (Retirement 101: Planning for FV=PV(1+i)t3) of my article is a bit odd, you say? Maybe it is to you, but it most certainly shouldn’t be to a professional financial advisor. I find it curious how so many advisors all across the country fail to solve for FV. What is FV, you ask? It represents “Future Value” (as in, the future value of your money) of course. Why is factoring inflation so important to the hard-earned asset base that you have accumulated to...

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Silent Thief

Tony Wiley | May 21, 2014 | Inflation, Retirement Planning

For years now, with record low interest rates, many have come to the belief that inflation is a non-factor. Before I address that assumption, let us first understand what inflation is. In its simplest terms, inflation is an increase in the price of goods and services in an economy over a period of time. It reduces purchasing power and has been referred to as the “Silent Thief”. Historically, inflation is said to grow at around 4% per year. That means one dollar today should be...

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Inflation – Is It Coming Again, and What Can You Do About It?

Anton Hendler | May 1, 2014 | Index Annuities, Inflation

It wasn’t that long ago, that inflation was the topic of choice but, after a protracted period of next-to-no inflation, and perhaps a touch of deflation, not much has been heard about this inevitable fact of our lives for quite some time now. The latest annual inflation rate for the United States is 1.1% through the 12 months ended February 2014* and the average annual inflation for the past 100 years or so has been about 3.2%. Effectively this means that if you are not...

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Can Fixed Annuities Account for Inflation?

Stan The Annuity Man | February 20, 2014 | Deferred Annuities, Fixed Annuities, Inflation, Longevity Annuities, SPIA

Question: Inflation is something that worries me going forward. Can fixed annuities actually account for inflation? Is that possible? Eddie M. from Casper, Wyoming Answer: Great question Eddie, and I agree with you that the real possibility of future inflation is the financial gorilla in the room. I think everyone is concerned about it. Let me start by saying there is not an annuity on the planet that is the perfect solution to combat inflation, and no strategy anywhere can address hyperinflation. However, income annuities...

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How to Drive Through Inflation with an Indexed Annuity

Richard Ericson | January 28, 2014 | Index Annuities, Inflation

You know you’re getting old when you are telling your children how much things used to cost. When I was a boy, my father used to moan when gas prices hit $0.30 a gallon. We sold our boat when gas prices skyrocketed to $0.40 a gallon. In 1980, a Porsche 911 cost $32,000. Today, the similar Porsche runs $151,000, which is a 371% increase! At that rate, in another 25 years, that same car will run $600,000. Various driving conditions call for different tools, and...

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