Today, their nest egg consists of the proceeds of their house, his pension, a modest stock portfolio and Social Security. It helps fund a comfortable retirement, he said. But, he's starting to feel inflation's pinch. The Louisiana legislature has only approved minor pension-benefit increases while he's been retired. And, he developed heart disease a few years ago.
Inflation is a bad thing for retirees on a fixed income.
The Canada trip keeps Canaday on his budget. He stays ahead of inflation with his stock portfolio's proceeds. The stock dividends make up one-third of his income. And that has kept Canaday and his wife in fairly good financial shape. There's nothing wrong with reducing your portfolio's risk level in retirement, financial planners say.