We’ve Moved! 6121 Excelsior Blvd. St. Louis Park, MN 55416

“Inflation Busters”

There are a lot of positives in economic growth, but one downside is the inflation that sometimes comes with it. An increase in the GDP rate, consumer prices and, inevitably, interest rates often follow as well.

In recent months, we’ve seen a jump in gas rates; home prices are rising at the quickest pace in nearly 10 years; and the rising cost of medical care — which had slowed down until this year — is back on the ascent. While today’s global markets and automation technology help keep price increases down on most consumer goods, inflation can still impact the long-term purchasing power of a conservative retirement portfolio.

That’s why some investors incorporate securities touted as “inflation busters” because they can provide ongoing income growth but are still considered low-risk instruments. Inflation-busting portfolio options could include:

  • Treasury inflation-protected securities (TIPS) — Government-issued bonds that adjust principal value each month to align with inflation (or deflation).
  • Floating-rate fund — This type of fund typically invests in variable rate bank loans issued to companies with substandard credit ratings. Because the interest rate adjusts according to a short-term benchmark, they offer ongoing income opportunity.
  • Stocks as an asset class have historically outpaced the rate of inflation in the long haul. Yet some sectors weather an inflationary environment better than others. For example, the energy, industrials and materials sectors generally outperform more interest rate-sensitive sectors such as utilities and telecommunications during periods of rising inflation.
  • Real estate has long been recognized as an inflation hedge, but some retirees don’t want to get into the business of being a landlord. One way to potentially reap the gains of real estate income without a direct investment is to explore the benefits and risks of a real estate investment trust (REIT), REIT mutual fund or REIT ETF.

The content provided here is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

Share This Article

Get the latest retirement news today!

Subscribe Now

  • This field is for validation purposes and should be left unchanged.

Pick your topic or keywords

Similar Posts

Getting to the Truth: How Strong is Social Security Anyway?

The number one news headline grab this month isn't the Kardashians or Donald Trump. Nor is it Spieth's distressing loss at the Open Championship by…

Continue Reading
Secured Retirement Radio: Probability Investing vs. Safety First

Blog post written by Dale Decker We all have different tolerances for risk. Some people prefer to go big and climb Mount Everest. Others are perfectly…

Continue Reading
Cary Grant’s Retirement Income Checklist

“You never miss the water until the well runs dry.” His Girl Friday (1940) – Walter Burns (Cary Grant) In the 1940’s movie His Girl…

Continue Reading

Danielle Christensen


Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!