Inflation and your retirement income strategy

You might not think much about inflation. After all, it’s been quite low for the past several years. Still, you may want to take it into account when you’re planning your retirement income strategy.

Of course, no one can really predict the future course of inflation. But it’s a pretty safe bet it won’t disappear altogether — and even a mild inflation rate, over time, can strongly erode your purchasing power. Consider this: If you were to purchase an item today for $100, that same item, in 25 years, would cost you $209, assuming an annual inflation rate of 3%. That’s a pretty big...