How Does a Falling Dollar Affect Your Retirement Plan?

Matt Stevenson of Allied Wealth discusses how a falling dollar might impact your retirement plan.

Matt discusses the importance of accounting for cost of living increases and inflation in your plan. We also examine the U.S. dollar’s status as a “reserve currency” relative to other major global currencies and whether there has been a significant shift in the environment.

The impact of a falling dollar on retirement can depend on a variety of factors, including the individual’s specific financial situation and investment strategy. However, in general, a falling dollar can have both positive and negative effects on retirement planning.

One potential negative effect is that a falling dollar can lead to inflation, which can erode the purchasing power of retirement savings. For example, if prices rise but the value of a retiree’s savings does not keep up with inflation, they may find that they are unable to afford the same standard of living in retirement that they had planned for.

On the other hand, a falling dollar can also have some positive effects for retirees. For example, if an individual holds investments denominated in foreign currencies, a falling dollar can make those investments more valuable in dollar terms. Additionally, a falling dollar can make US exports more competitive, which can boost the performance of US-based companies and benefit those invested in them.

Ultimately, the impact of a falling dollar on retirement will depend on a variety of factors, including the individual’s specific investments, their risk tolerance, and their ability to adjust their retirement plan in response to changing economic conditions. It is important for retirees to carefully consider these factors and work with a financial advisor to develop a plan that takes into account the potential impact of a falling dollar on their retirement savings.


Our Channel “ ON THE MONEY“, is powered by Allied Wealth, Houston’s premier wealth management and financial planning firm. On the Money brings viewers educational, topic-driven, and real-life financial scenarios every week.

Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.

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