The No. 1 Concern for Retirees Today

The No. 1 concern for retirees today... The looming threat of inflation... Get ready for Doc's retirement 'wake-up call'... How to protect your nest egg... Why you need boring old cash... Sign up now for Doc's free event...

We asked, you answered...

A few weeks ago, I (Corey McLaughlin) asked Digest readers to send in their biggest questions and concerns about retirement today. We explained that Retirement Millionaire editor Dr. David "Doc" Eifrig, in particular, wanted to know your thoughts...

You see, at the time, Doc was in the early stages of planning an all-new urgent retirement briefing. He knows a lot of folks are worried about protecting and growing their nest eggs.

First off, thank you... Doc reported that his inbox overflowed with messages – and the responses helped tailor the event in the best way to help the most people.

Some of the responses even surprised him. As Doc wrote in his free Health & Wealth Bulletin on May 26...

We're in a market boom right now. That means a bust is sure to be right around the corner. Plenty of folks wrote in and asked how to handle the coming Melt Down.

But surprisingly, that wasn't the No. 1 concern for retirement though...

It turns out that folks are more worried about the looming threat of inflation.

We've covered inflation closely since the start of 2021... We've expected it to rise as a result of the seemingly endless money-printing that has taken place in response to the COVID-19 pandemic, as well as ongoing supply-chain disruptions.

We've already seen "real world" prices rising in various industries... This is stuff that everyday people face the effects of, whether they know it or not.

And in the broader picture, inflation numbers should shape how the Federal Reserve handles monetary policy... which can in turn help or hurt stocks and other investments.

This afternoon, for example, the Fed announced expectations of 3.4% inflation this year. That's a full percentage point higher than the central bank's previous prediction in March.

And in their "dot plot" projections, Fed members indicated that they could now hike the benchmark interest rate (perhaps twice) in 2023... as opposed to not at all until 2024, like they had previously said a few months ago.

The major U.S. stock indexes were mostly flat for most of the trading day. But after that news broke, the benchmark S&P 500 Index and tech-heavy Nasdaq Composite Index each sold off nearly 1% immediately before rebounding into the end of the day.

The big problem is that inflation reduces the purchasing power of your existing money...

We've referred to inflation before as a "hidden tax" that is always there – like a crocodile lurking in a body of water. The more dollars government creates, the less valuable each dollar becomes.

As Doc also wrote on May 26, this is particularly dangerous for a certain subset of the overall population...

For retirees, your health care becomes more expensive, as well as your housing costs and even your groceries. Simply put, a dollar won't buy as much as it used to before a surge in inflation. And that means you run the risk of outliving your money.

That's scary to think of...

It can be hard enough to calculate how much money you might need in "regular" retirement circumstances. Now, add to the mix the government debasing currency at record levels.

We don't wish the scenario on anyone.

But with all that said, we have some good news to report...

Doc heard your concerns, and he's now ready to address them... His urgent retirement briefing will go live one week from today – on Wednesday, June 23, at 10 a.m. Eastern time.

And based on what we've seen, we're pretty excited...

Doc is calling this event a retirement "wake-up call" for every American over age 50. And frankly, we believe any investor – regardless of age – would benefit from what he has to say.

We're sure that inflation will be a big topic covered during the event. And in general, Doc is planning to discuss the biggest threats to retirees' portfolios today...

That can be any number of things today – like soaring taxes... adviser and portfolio fees... skyrocketing medical bills... high stock market valuations... and a beaten-down bond market.

And your money may already be in jeopardy...

We don't hear Doc make claims like this very often...

But he says the first domino just fell in what may be the greatest retirement crisis in modern history... And according to Doc, there's one "lie" being told today that could wipe out everything that retirees have worked so hard to build.

Fortunately, though, Doc says there are ways to protect yourself...

During next week's event, Doc will be joined by his right-hand man and senior analyst Matt Weinschenk for a first-of-its-kind retirement briefing. They plan to discuss the safest places to put your money now, what to do with your 401(k), and much more.

Here's some more good news...

Just for registering to attend the event, Doc will also send you a free report on how to protect your wealth from Big Government, Big Banks, Big Pharma, Big Everything... And that's just the first of many bonuses he has put together for anyone who signs up.

This is important viewing for anyone in retirement, close to retirement, or simply dreaming of retirement. Click here to reserve your spot, get your free report, and learn first-hand about Doc's retirement wake-up call next Wednesday morning.

And stay tuned to the Digest next week... Doc and his research team will be bringing you a series of new, retirement-focused essays that they've put together especially for our Digest readers.

In the meantime, here's a taste of what you can expect...

Doc recently wrote an essay about "boring old cash," as he called it. And he talked about one of those timeless investing lessons that everyone should understand...

Longtime readers know Doc strongly recommends investors hold "cash"... To him, cash is money that you have in savings, checking accounts, certificates of deposit (CDs), or U.S. Treasury bills. Depending on your goals, he suggests putting anywhere from 5% to as much as 35% of your portfolio in cash.

The idea of parking this much money out of the markets might be hard for a lot of people to stomach. That's especially true in a world where yields on savings accounts and CDs are next to nothing – or worse, depending on inflation.

In Doc's words, from the May 19 Health & Wealth Bulletin...

I get it... Having your dollars on the sidelines rarely feels good. If I told my buddies that a good chunk of my portfolio was sitting in cash during a bull market, I'd probably get laughed at and get called a sissy.

But he suggests folks think about cash differently...

Holding cash gives you "optionality" in the market. And optionality can be worth well more than the numbers you see in the cash section of your portfolio...

Doc explained that this is how legendary investor Warren Buffett thinks about the cash positions of his Berkshire Hathaway (BRK-B) portfolio – which, of course, is one of the most successful investments ever. Buffett thinks of cash as a call option with no expiration date on every asset class that's out there.

As Doc explained in his May 19 Health & Wealth Bulletin essay...

If you're new to options, a call option is a derivative security that allows you to buy shares of an underlying asset. Basically, if things go your way, call options can allow you to purchase stocks for prices well below market prices.

So Buffett is saying that cash has an underrated value. That value is the opportunity to buy stocks and other risk assets at bargain prices.

Think of it like this, Doc continued...

If you are fully invested today in the S&P 500 and it crashes 40%, you're going to look around and see tons of wonderful businesses trading at great prices... world-class stocks like Disney (DIS), JPMorgan Chase (JPM), and Coca-Cola (KO).

But you'll be stuck. You'll need to sell your stocks that are down 40% to free up cash to buy discounted stocks...

If you are fully invested, you can't take advantage of opportunities that come your way.

Conversely, if you have cash on hand, you'll be able to take advantage of buying opportunities – like the type we saw back in March 2020 at the peak of the COVID stock-market panic.

In other words, you could make just as large of a return – if not greater – on that money you have on the sidelines today... And you'll also have peace of mind knowing that you have cash on hand to begin with.

This is just a small taste of the great advice Doc will dispense next week in his retirement wake-up call. As far as we're concerned, it's a can't-miss event for not just any retiree... but also any investor in general.

You can't really come up with any excuses not to sign up... As we said, you'll get a free report and other bonuses simply for registering. And again, you can do that (for free) right here.

Doug Casey: The Only Guarantee Is Chaos

New York Times bestselling author Doug Casey speaks up about the dire state of the U.S. economy. "There is only one guarantee, and that is utter financial chaos," he tells our editor-at-large Daniela Cambone in this candid conversation...

If that's the case, what should you do? Doug shares why it's important to "diversify politically" to protect your portfolio – and he details exactly how to do it...

Click here to watch this video right now. For more free video content, subscribe to our Stansberry Research YouTube channel... and don't forget to follow us on Facebook, Instagram, LinkedIn, and Twitter.

New 52-week highs (as of 6/15/21): Asana (ASAN), Bristol-Myers Squibb (BMY), SPDR Euro STOXX 50 Fund (FEZ), Freehold Royalties (FRU.TO), IQVIA (IQV), Nestlé (NSRGY), Intellia Therapeutics (NTLA), ResMed (RMD), and Suncor Energy (SU).

In today's mailbag, feedback on Mike Barrett's Tuesday Digest about the electric-vehicle ("EV") industry. What say you? As always, e-mail us at feedback@stansberryresearch.com.

"Hi Mike: It seems most buyers and investors of these vehicles are forgetting a most important point. [Lithium-ion] batteries degrade over time. They slowly lose power and eventually need replacing. This could end up 50% of the vehicle cost maybe in 10 years.

"What will customers think then?

"Another point is emphasis on EV's slows progress on cleaning up combustion engine emissions. Some of the latest diesels are the cleanest ever, just look at Cummins heavy plant engines." – Paid-up subscriber Chris C.

"The following is true of every type of innovation. Quality, function, and design are competitively critical. So is brand awareness and pricing for different demographics. But none of these will succeed on their own. With cars and trucks, it takes great marketing, serviceability, and ease of use. Existing automakers are ahead in this game. With inventory and an existing global distribution system they will prevail, but only when charging stations are available 'everywhere' that people stop for more than an hour. That doesn't exist today.

"Until it does, no family will buy more than one EV, due to longer travel requirements. I'd rather invest in the leading manufacturers and installer of 'pay for charging stations' than the EV makers. Reveal that one for us folks." – Paid-up subscriber John C.

All the best,

Corey McLaughlin
Baltimore, Maryland
June 16, 2021