Retirement Planning Specialist Thomas Helbig discusses fears of inflation and how it could affect retirement planning.

St. Louis, MO – January 18, 2013 – Thomas Helbig, Founder of the Retirement Advisory Group, recently explained inflation, its historical effect on the economy and how it affects our retirement planning today. Mr. Helbig explains:

Inflation is a multi-dimensional thing. It is not just the increase in prices.  Most Americans would agree that their view of inflation has to do with the prices of certain items and if the prices of those items they buy most frequently are up from the prior year – then they are dealing with the effects of inflation.

Price Inflation hurts retirement because most retirees live off a fixed income, so it is especially painful if the interest rates available from safe investments and bank-offered savings plans are low. It is a classic case of, “costs are up and revenue is flat.” However, there is a lot more to it.

Monetary Inflation is a whole different type of inflation. It is a simple inflation to track because it simply means the Government is asking the Federal Reserve to print more money. They are asking to inflate the amount of money available. This idea is, in historical terms, relatively new monetary inflation started during the Kennedy Administration and has been a steady policy in Washington since it started, regardless of political party. Democrats have inflated money supply just as the Republicans have inflated the money supply. And you know what? We, as Americans, like it. More money around equals more prosperity … As long as the money holds its value.

Monetary inflation likely played a key role in the decision to abandon the gold standard in the US, on  August 15, 1971, leading to the “Nixon Shock”.  In essence, the change to a floating exchange rate in the US represented a form of reset for our own currency right here in the United States.

What does this mean to us today? Mr. Helbig continued:

The debate will continue to rage on because although history says one thing you cannot ignore the following and very recent financial report:

10:12AM EST December 13, 2012

The CPI (Consumer Price Index), out Friday, sizes up prices paid by consumers. It’s expected to fall 0.2% for November.

Even the so-called “core” CPI, which omits prices for food and fuel, is expected to rise just 0.1%. This suggests possible deflation and not inflation at all even at a time where the amount of Government debt is reaching nearly unbelievable levels and the Federal Reserve is running the printing press 24/7.

The important thing to consider is the possibility of inflation and, more specifically, what are you doing with your finances to manage that possibility? If you don’t have a plan of action, you may consider some amount of your retirement money positioned to grow with inflation. For long term planning, it is likely a good idea since prices tend to go up over time.
About Thomas Helbig:

Thomas Helbig, an Independent Advisor and Certified Senior Advisor, is a specialist in all aspects of retirement planning and has been educated so thoroughly in this niche market, that he is one of the most knowledgeable authorities in the country.

Helbig is also an approved Financial Advisor through the National Ethics Bureau and has been named a Five Star Best in Client Satisfaction Wealth Manager three years in a row in the St. Louis Magazine. This is an honor less than seven percent of all the Wealth Managers in his area have achieved.

Helbig is the Best-Selling Author of The Boomer’s Guide to a Worry-Free Retirement: Sleep-Well Investment Strategies and a highly sought after speaker, as well. He was the keynote speaker at a conference in Dallas, Texas attended by some of the top producers in the business. .  He has been featured in USA Today, Newsweek, Wall Street Journal, St. Louis Magazine, and the St. Louis Post Dispatch as being one of the leading retirement planning specialists in the country.

Additionally, because of his expertise and significant contributions to his industry, he was recently featured in the Wall Street Journal as one of the country’s leading “Trendsetters” in the financial services and retirement planning world. Thomas was also featured in Forbes Magazine in the January 2013 National Edition as one of America’s Top 20 Premier Experts in the country.

Learn more about Thomas Helbig at http://www.retirementkey.com/.