Dividend strategies fail to
keep up with inflation when they fail.
Not exact matches
That deal, done as a way to
keep labor peace, unexpectedly turned costly
when oil prices shot
up, pulling
inflation and interest rates along
with it.
So that
when that inevitable day arrives, your policy has grown as you aged, allowing your beneficiary to receive a death benefit that has (hopefully)
kept up with the pace of
inflation.
Even though dividend income generally
keeps up with inflation and usually surpasses it, there have been instances
when dividends have fallen behind.
If you buy this product
when you are 65, by age 90, you would have
kept up with inflation less than 15 % of the time.
Even
when dividends fail to
keep up with inflation, any loss in buying power is gradual.
That is, dividends have
kept up with inflation but have not grown (on average)
when P / Ex = 25 for all values of x using 1, 5, 10, 15, 20, 25 and 30 years.
While it is a challenge to
keep up with inflation, a little effort can pay off
when caring for your cash balances.
Accelerated benefit riders have effectively provided consumers
with a greater level of control over their insurance protection, according to Jason Kestler, president and CEO of Kestler Financial Group headquartered in Leesburg, VA. «Clients are now able to start or stop a stream of income from their policies
when they have a qualifying need, and many riders now also provide a cost - of - living adjustment to
keep up with inflation.»
So that
when that inevitable day arrives, your policy has grown as you aged, allowing your beneficiary to receive a death benefit that has (hopefully)
kept up with the pace of
inflation.