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With a report released earlier in April showing inflation rises again and the prospect of lower interest rates at the next Federal Reserve meeting, many Americans may find themselves looking for ways to improve their financial bottom line. This is especially true for older adults, many of whom may rely heavily on Social Security And Pension saving. For this demographic, in particular, it’s important to explore other ways to protect their existing money and improve their potential income stream.
Fortunately, there are currently several ways to achieve both of these goals. Below, we’ll detail three actions seniors should consider with inflation still high.
Start by exploring your gold investment options online today.
3 measures seniors should consider with inflation still high
Here are some things seniors should think about as they continue to face the high cost of inflation.
Invest in gold
Gold has always been a smart and efficient way to protect against inflation And diversify your portfolio, two characteristics that make the precious metal particularly attractive at the moment. Gold can help offset the negative influence of inflation with a value that tends to remain stable or even increase during such economic times.
And this has been the case in recent weeks since the price of metal climbed to records. But the diversification it can provide is also essential, especially for seniors whose portfolios are largely comprised of volatile stocks and bonds. In this case, gold can help balance the performance of these assets, providing another layer of protection that is particularly valuable at this time.
Learn more about the benefits of investing in gold online now.
Consider a reverse mortgage
If inflation and rising borrowing costs have significantly affected your available cash flow, homeowners 62 and older should consider looking into a reverse mortgage. This loan, based on the appraised value of your home at the time of application, will only have to be repaid if the property is sold or you die.
And, while it may not be ideal to leverage your existing network equity, especially if you plan to leave it to your loved ones after your death, it is always better to take on more debt. For many older people, this can be a smart way to supplement limited retirement income now.
Learn more about your reverse mortgage options online today.
Review bank accounts
The inflation rate last month was 3.5%. The average interest rate on a regular savings account is currently 0.46%. So if you keep your funds in a regular account, you lose money and not keep pace with inflation. That’s why it’s important to periodically review your bank accounts to find opportunities to grow your savings further.
High Yield Savings Accountsfor example, work the same way as regular savings accounts, but with an exponentially higher interest rate (up to 6% for some accounts at the moment). Certificates of Deposit (CD), meanwhile, could come with even higher rates, although they will force savers to hold on to their money for an extended period. However, either account option is usually better than the minimum rate you’re likely currently earning with a regular account.
Find out how much more you could earn with a high-yield savings account here.
The essential
Although high inflation and high interest rates can be problematic for older adults, there are ways to effectively offset some of their negative consequences. By investing in gold, for example, seniors can better protect themselves against inflation and diversify their portfolios. Reverse mortgages, on the other hand, offer an alternative source of income with less baggage than other home equity loan options. And by opening high-interest accounts now, like high-yield savings accounts and CD accounts, savers can earn significant amounts of money simply by changing their savings strategy. However, as is the case with all financial decisions, it is essential to carefully consider each decision to improve the chances of financial success.
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