Estate planning is integral to financial planning for anyone with assets to protect. Inflation can significantly impact the value of your estate, so it's important to consider it when you're developing your plan.
Inflation and How it Affects the Economy
Inflation is an economic concept that refers to the overall level of prices in an economy. It measures how much more expensive goods and services have become over a certain period and is usually expressed as a percentage compared to a base year or period. Inflation significantly affects the economy, as higher prices decrease purchasing power, increase unemployment, and decrease savings. High inflation levels also reduce investment returns and erode confidence in the currency, which can lead to an economic recession. Controlling inflation is essential for maintaining strong economic growth.
Inflation and Your Estate Plan
Inflation can drastically alter the worth of your estate over time, making it vital to factor it into your estate planning. Inflation reduces the purchasing power of non-indexed investments, such as savings accounts and certificates of deposits. Equity investments that keep up with inflation may counterbalance this situation.
A good estate plan will include provisions that cover personal and financial circumstances that are subject to change, as well as strategies that have steps in place to address any fluctuations in inflation. Taking these steps will ensure your legacy maintains its intended value and impact despite increases or decreases in inflation over time.
Protecting Your Assets From Inflation
Managing your assets during times of inflation is no small feat, but several strategies can be employed to preserve the value of your assets.
One approach is to invest in real estate or gold and silver investments, which don't rely on monetary valuations for their value. Diversifying investments across different asset classes is another effective way to protect your money from inflation, as it allows you to benefit from the appreciation of alternative financial instruments that might resist price fluctuations caused by changes in purchasing power. Finally, monitoring inflation levels and making adaptive adjustments in managing your financial portfolio could help secure the long-term sustainability of your wealth.
Let Adler Law Help Protect Your Assets
Inflation can seriously impact your estate plan and the security of your assets. Our experienced New York estate planning attorneys at Adler Law is dedicated to helping you protect what's most important to you. We have the know-how to create an estate plan that strategically uses tax laws, shielding you and your loved ones from being struck by inflation.
Additionally, if inflation threatens your existing estate plan, our team can help you evaluate it and make changes to protect your assets as needed. Our commitment to providing timely and effective services helps ensure that investments are appropriately allocated and safeguarded in any changing financial landscape. Contact Adler Law to see how we can help. (516) 740-1184