The economy continues to evolve in complex ways. Inflation is still sticking around, and growth seems to be slowing, which has some folks raising concerns about the possibility of stagflation. That’s when inflation rises, the economy slows down and unemployment goes up — a situation the U.S. struggled with in the 1970s.¹ 

For those nearing or in retirement, this could have serious implications. If stagflation does happen, rising prices can erode your purchasing power, while market fluctuations may disrupt your retirement income strategy.

That’s why understanding how to protect what you’ve worked so hard to build is more important than ever. To stay proactive, here are four steps you can take:

1. Leverage Catch-Up Contributions: Max out your 401(k) and IRA contributions — including catch-up contributions if you’re 50 or older — to supercharge your savings.
2. Optimize Your HSA: Maximize contributions to your Health Savings Account if you have a high-deductible health plan. These funds grow tax-free and can be a valuable resource for medical expenses.
3. Pay Down High-Interest Debt: Eliminating high-interest debt like credit cards and personal loans frees up income and provides some breathing room.
4. Avoid “Doom Spending”: Unless you’ve already budgeted for a major expense, don’t panic buy. Instead, focus on essentials and build an emergency fund. Mindful spending is the real safety net.

Every day, the team here at Richmond Brothers helps people like you build financial confidence no matter what’s happening on the news. We do that by developing portfolios that are designed for volatility, tailored to your goals and risk tolerance, and supported by a diversified strategy.

Let’s Connect

If you have questions about your finances or want to explore strategies tailored to weather market volatility, reach out today to schedule a time to talk with us.

Together, we can create a plan to help preserve your retirement savings and help you stay confident in any market. Don’t wait — reach out now.

Sources:

¹ Lorie Konish. CNBC. April 19, 2025. “Experts see higher stagflation risks. Here’s what it means for your money.” https://www.cnbc.com/2025/04/19/experts-see-higher-stagflation-risks-heres-what-it-means-for-your-money.html. Accessed April 24, 2025.

Content prepared by Advisors Excel.