DES MOINES – In September, inflation rose 0.4% and 8.2% compared to this time last year. This has many people wondering what’s the best way to protect their investments from inflation.
Mark Triplett, a Financial Professional from Triplett-Westendorf Financial Group in Ankeny, said that many clients are worried right now about their investments, especially around retirement.
“We’ve got a lot of clients right now that plan to retire now or in the near future and those that have done the planning in the past are still able to continue down that path,” Triplett said. “There may be some folks out there who are wondering ‘am I still able to do so?'”
Triplett recommends working with a financial professional to navigate the market meltdown.
“I don’t think it’s ever wise to make knee-jerk reactions. If you have a long-term financial plan, a long-term financial strategy, and you go through a period of time with a lot of uncertainty you start to build clarity that okay this is an opportunity, there are things we can do right now,” Triplett said. “We call it making market lemonade out of market lemons.”
Here are some of the tips Triplett has for protecting your portfolio:
- Stay Invested: Pulling out of the market right now locks in inflation losses.
- Don’t Time the Market: the rule of thumb is time in the market is always better than trying to time the market.
- Stick to the Plan: sticking to your long-term financial plan is a good way to get through economic downturns.
- Work with a Professional: working with a financial advisor is a great way to evaluate the best path forward and deal with an uncertain market.
Triplett warns that the Federal Reserve may raise interest rates further to try to slow inflation.