* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Wednesday, August 6, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

    Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

    ‘Billie Jean’ – Hyde Park Herald

    The Enduring Magic Behind ‘Billie Jean’ Revealed

    Hank Hill returns to a changed world in new ‘King of the Hill’ episodes – New Haven Register

    Hank Hill Navigates a Bold New World in Thrilling New ‘King of the Hill’ Episodes

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Go-to entertainment: why gaming was made for the toilet – The Guardian

    Why Gaming Is the Ultimate Way to Pass Time in the Bathroom

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Future Trends In HR Technology – Dataconomy

    Future Trends In HR Technology – Dataconomy

    Nasdaq-listed Verb Technology to build $558 million TON treasury, rebrand as TON Strategy Co. – The Block

    Nasdaq-Listed Verb Technology to Build $558 Million TON Treasury and Rebrand as TON Strategy Co

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    Credo Technology: Wiring The AI Revolution (NASDAQ:CRDO) – Seeking Alpha

    Credo Technology: Driving the Next Wave of AI Innovation

    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

    Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

    ‘Billie Jean’ – Hyde Park Herald

    The Enduring Magic Behind ‘Billie Jean’ Revealed

    Hank Hill returns to a changed world in new ‘King of the Hill’ episodes – New Haven Register

    Hank Hill Navigates a Bold New World in Thrilling New ‘King of the Hill’ Episodes

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Go-to entertainment: why gaming was made for the toilet – The Guardian

    Why Gaming Is the Ultimate Way to Pass Time in the Bathroom

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Future Trends In HR Technology – Dataconomy

    Future Trends In HR Technology – Dataconomy

    Nasdaq-listed Verb Technology to build $558 million TON treasury, rebrand as TON Strategy Co. – The Block

    Nasdaq-Listed Verb Technology to Build $558 Million TON Treasury and Rebrand as TON Strategy Co

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    Credo Technology: Wiring The AI Revolution (NASDAQ:CRDO) – Seeking Alpha

    Credo Technology: Driving the Next Wave of AI Innovation

    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

With inflation staying higher for longer, stocks are best for your retirement savings

December 20, 2023
in Business
With inflation staying higher for longer, stocks are best for your retirement savings
Share on FacebookShare on Twitter

We have many reasons to believe U.S. inflation will remain elevated for several more years, and stocks may be your best option for long-term savings.

During the 1990s and 2000s, the average annual increase in the consumer price index was about 2%. Americans benefited from the digital revolution. Vast improvements in computing power, and easier access to software through the internet, cloud and smartphones boosted productivity. 

Meanwhile, globalization and economic reforms brought China and smaller Asian economies into the West’s supply chain — cheap labor for inexpensive coffee tables and computers. Unemployment in the West was a chronic policy concern, but that kept wages and inflation down even in non-traded services.

Now, all of that has flipped. Artificial intelligence is replacing the internet as the driver of change, but ChatGPT poses quite different challenges. AI is tasked with replacing workers with complex skills and judgement and that will prove more difficult. 

Declining birth rates and partisan squabbling about immigration reform have created skilled labor shortages.  Expensive college degrees often don’t translate into marketable skills. All this creates wage pressures — and inflation.

Economic reforms made China prosperous but also dangerous to the world order. Shifting manufacturing to Vietnam, India, Mexico and other venues and reshoring semiconductor production is costly and inflationary.

Meeting the competing demands for a stronger military and social programs is driving up U.S. federal deficits. Those will force the Federal Reserve to choose between uncomfortably high interest rates or printing money to purchase the resulting debt.

Inflation in the U.S. more in the range of 3% to 4% than 2% is likely. As baseline inflation rises, so does volatility — spikes to 5% or 7% are more painful for consumers than spikes to 3%

All of this is tough on the aging U.S. population. For example, teacher pensions in Virginia are adjusted annually up to 3% for inflation. Above that, retirees hired before 2010 get half that rate up to 5%. Those hired afterwards receive a max of 3%. Many other defined benefit pensions pose similar issues, as do many annuities.

Most Americans don’t received defined benefits. They plan for retirement using tax-deferred accounts established by employers, or save through IRAs and similar vehicles. Historically, people have been advised to invest in equities according to the “100 minus your age” rule. If you’re 65, for example, that’s 35% stocks and 65% bonds.

Yet a spike in inflation and interest rates reduces the purchasing power of payments from existing bonds and the market value of those bonds for retirees who are gradually selling securities.

Higher inflation requires Americans to take more risk by investing larger shares in stocks— for example, an S&P 500
SPX
index fund. According a data base maintained at the NYU Stern School of Business, over the past 25 years, the average annualized return for the S&P 500 was 9.2%, while 10-year Treasurys returned 1.8% and home values added 5.3%

If you can own a home for about as much as you can rent, only buy as much house as you reasonably need. Otherwise, the money is better invested in equities. After all, you can’t sell bedrooms vacated by adult children one at a time as you need cash. Downsizing in real estate is costly — you’re on the hook for realtor fees, renovating the new home, relocation costs and renting storage space, among other expenses.

Bonds and other fixed-income instruments such as annuities provide ballast, but at the cost of eroding purchasing power. Over a 20-year retirement, losing 2% a year to inflation diminishes the redemption value of a bond by 33%, and at 3% inflation the hit is 45%.

Investing mostly in stocks and then gradually reducing your equity holdings to 50% over the 10 years prior to retirement appears to be the safest course. The more you save for retirement, the easier it is to endure the volatility of the stock market. If you enter retirement with half of your assets in stocks and half in 10-year Treasurys, the historical averages indicate an average annual return of about 5.5%. That should beat inflation.

Peter Morici is an economist and emeritus business professor at the University of Maryland, and a national columnist.

Also read: As you near retirement, scrutinize your Social Security statement. Here’s what catches an adviser’s eye.

More: Want great stock-market returns without great risk? It’s possible if you do these two things.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : MarketWatch – https://www.marketwatch.com/story/with-inflation-staying-higher-for-longer-stocks-are-best-for-your-retirement-savings-c42706cc?mod=mw_rss_topstories

Tags: businessInflationStaying
Previous Post

The top 1% of Americans aren’t to blame for income inequality

Next Post

AI could end up being more risky than profitable if we’re not careful

Edward McNabb, pioneer of conservation bioacoustics and nocturnal ecology, died on May 7th, aged 81 – Butler Nature

Remembering Edward McNabb: Trailblazer in Conservation Bioacoustics and Nocturnal Ecology Passes Away at 81

August 5, 2025
Insider’s View: Europe can be a leader in AI for science – Science|Business

Insider’s View: Europe can be a leader in AI for science – Science|Business

August 5, 2025
The FDA is targeting orange juice. Here’s why, and what the science says. – The Boston Globe

Why the FDA Is Targeting Orange Juice-and What the Science Actually Reveals

August 5, 2025
Beyond Nutritional Deficiencies: Managing GLP-1 Side Effects With Lifestyle Interventions – Patient Care Online

Beyond Nutritional Deficiencies: Managing GLP-1 Side Effects With Lifestyle Interventions – Patient Care Online

August 5, 2025
Shaw Travels To China For World Games With U.S. Men’s National Team – hailstate.com

Shaw Joins U.S. Men’s National Team for Thrilling World Games Showdown in China

August 5, 2025

A Turbulent Week Rocks the American Economy

August 5, 2025
Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

Rachael Leigh Cook and Brandon Routh ‘Happy to Have Found Each Other’ Following Respective Divorces – yahoo.com

August 5, 2025
Chatbots Can Trigger a Mental Health Crisis. What to Know About ‘AI Psychosis’ – Time Magazine

When Chatbots Spark a Mental Health Crisis: Unraveling the Enigma of ‘AI Psychosis

August 5, 2025

Why Young Adults Are Checking Out of Politics and Choosing Not to Vote

August 5, 2025
Future Trends In HR Technology – Dataconomy

Future Trends In HR Technology – Dataconomy

August 5, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (756)
  • Economy (781)
  • Entertainment (21,658)
  • General (16,306)
  • Health (9,818)
  • Lifestyle (789)
  • News (22,149)
  • People (780)
  • Politics (790)
  • Science (15,994)
  • Sports (21,276)
  • Technology (15,758)
  • World (762)

Recent News

Edward McNabb, pioneer of conservation bioacoustics and nocturnal ecology, died on May 7th, aged 81 – Butler Nature

Remembering Edward McNabb: Trailblazer in Conservation Bioacoustics and Nocturnal Ecology Passes Away at 81

August 5, 2025
Insider’s View: Europe can be a leader in AI for science – Science|Business

Insider’s View: Europe can be a leader in AI for science – Science|Business

August 5, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version