Five Financial Goals for the New Year The new year is here, and now is the time to create financial goals to help you get on track and set yourself up for a more financially stable future.

Retirees are often aware of the detrimental effects of inflation on their retirement savings. As the cost of goods rises, the value and buying power of retirement accounts can diminish. For some retirees, maintaining their savings and lifestyle becomes a challenge. Savings accounts may seem like a safer option, but they generally lose purchasing power because the rate of interest is less than the inflation rate. Fortunately, there are different methods retirees can use to adjust for inflation and to help protect the value of their retirement.

After pushing interest rates gradually upward for three years, the Federal Reserve dropped the benchmark federal funds rate to near zero (0%–0.25%) in March 2020 to help mitigate the economic damage caused by COVID-19.¹ The funds rate affects many short-term interest rates, including the rates on money market mutual funds, which were already low to begin with.