3 ETFs for the Retirement Investor Worried About Inflation
Inflation hasn't been a factor in the U.S. for years. The average inflation rate over the past 10 years has been around 1.7%. But the economy is approaching new territory as it looks to emerge from the pandemic. That new territory may include higher inflation, though the duration and severity of it is anybody's guess.
Officially, the Fed is targeting an inflation rate of just above 2%. Unofficially, some experts, including a former president of the Federal Reserve Bank of New York, worry it could be higher.
Inflation affects your retirement savings by offsetting your investment growth. If your IRA grows by 10% this year, for example, and inflation averages out to 3% for the year, your net growth is 7%.
Source Fool.com
