Purchasing power might not directly impact your investments, but it could be important to consider how much your money can buy — especially when you're preparing for or already in retirement. Many retirees use a fixed-income investment strategy by buying assets like bonds, certificates of deposit (CDs) and annuities. These can provide a stable income and may be relatively low risk. But if inflation is at 5% and you're locked into a bond that's paying 5%, you're only making enough money to offset rising costs.  To account for changes in purchasing power, many retirement calculators let you choose an inflation rate. You can then see how your portfolio or plan may work in different circumstances.   The financial takeaway