How To Protect Your Assets from Inflation When Planning Your Estate

Strong plans for retirement and estates always take into account bad times.  We can’t deny that inflation is a big deal these days. It seems like inflation has reached every part of consumers’ lives, from the gas pump to the grocery store to the mall.

Many Americans don’t realize how much inflation changes planning for an estate, and people usually don’t know how much something costs until it’s time to buy it. Your estate plan’s assets should also grow over time, so you should keep an eye on whether or not they are.

Inflation is when prices go up, decreasing our buying power. Your estate plan is especially affected by inflation when the value of your assets grows slower than inflation, which lowers the value of the estate.

Estate planning aims to take care of a person’s assets so their beneficiaries can use them after they die. To ensure your beneficiaries benefit from your estate plan, you should manage it or revisit it periodically.

To ensure your estate plan is inflation-proof and safe, follow these tips:

Look over your plan

When you review your plan, you look closely at all its assets, whether cash, real estate, or something else. Review each asset, its current value, and how it has changed since the last time you looked at your plan.

Look at how stocks and bonds have done on the market. Consider how they have changed over time to decide if your current investment strategy needs to be changed.

Think about taxes

One of the hidden risks of inflation is that it can change how much you have to pay in taxes. During times of inflation, the price of real estate is one of the things that go up. Real estate can be a good investment, and the value of that real estate goes up, which could mean future taxes for your beneficiaries.

Another way to avoid paying taxes is to plan your estate with tools like irrevocable and charitable trusts in mind. In an irrevocable trust, for instance, the increased value of the property does not add to your taxable estate.

Trusts can help you keep your estate together and pay less taxes. The effects of inflation are harmful enough without the government making money off it.


The less variety there is in your estate plan, the less you can do with it. The saying “Don’t put all your eggs in one basket” is especially true when planning your estate and retirement.

Investing in stocks, bonds, real estate, and other things like insurance can protect your assets, make sure they grow and have more cash on hand. Even though stocks are more volatile, they usually pay off more when they go up. With regard to keeping their money safe, bonds are generally less volatile than stocks. One could think about buying I bonds, which have a return rate that changes with inflation.

Real estate can be invested in several ways. For example, real estate investment trusts (REITs) let people invest in real estate but keep more cash than if they bought a property themselves. Even though an insurance policy isn’t a hedge against inflation, a dividend from an insurance policy can be.

What to Keep in Mind About Plans for Retirement, Money, and Your Estate Your Future Goals

The economy’s changes can significantly affect how you plan for retirement and estate. Always keep your goals in mind when making these kinds of choices. Your goals will determine what you and your beneficiaries will need in the future, like when you retire or die. Discuss your retirement and estate plans with your financial and investment professionals at least once a year.

Life insurance and cash flow are the “Plan B” vehicles.

Cash on hand, or “liquidity,” is very important in a lousy economy. Having liquidity built into your investment plan can help you get through bear markets without hurting your retirement plans or estate plans.

A part of a liquidity strategy is to have some of your investments in things that are easy to turn into cash, like savings accounts and bonds. This makes it easy for you to get cash when you need it while letting you invest for the long term with the rest of your money.

You can use the cash value of your life insurance in several ways. Traditionally, life insurance policies give beneficiaries money when they die, but some policies also have a cash surrender value. This means that you can get money from your policy while you are still alive.

Waiting and being safe

Take a look at these options with a trained professional. When it comes to investing, you should be proactive instead of reactive. A good estate plan gets even better when you make decisions based on your knowledge. When people make snap decisions, their portfolios don’t reach their full potential.

You don’t have to make investment decisions immediately, and you should always consider your options carefully. Strong plans for retirement and estates always take into account bad times.