June 26, 2022

Lakeway Parks

The Smart Business

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Joseph Gillis Jr. is nearing retirement and has piled money into his nest egg during the pandemic. But he is concerned about two things: how climbing prices and a potential rise in corporate taxes could chip away at his investments. 

“It’s a mental struggle. My wife and I want to save enough so we can retire and be somewhat healthy and enjoy it,” says Gillis, 58, who is a manager of analytics at Tufts Medical Center. “But we also want to continue to see our savings grow.”

Gillis and his wife, who live in Bridgewater, Massachusetts, weren’t spending money dining out or going on vacation the past year. So they socked their stimulus checks and extra savings into their retirement accounts and scooped up shares of Disney, Coke and Hershey in hopes that those companies were diversified enough to come out stronger on the other side of COVID-19, he said.

He also likes to invest in stocks like those since they typically provide dividends for retirement income.

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Gillis is relying on a self-funded retirement. He and his wife are still aggressively investing in stocks, even though bonds have typically been a safe choice in the later stages of retirement investing and have historically paid a higher level of income than stocks.

But bonds haven’t delivered strong returns for years and yields are nowhere close to compensating investors for future inflation.

“With inflation going up, that means I need more money put aside because I just lost some of my buying power,” says Gillis. “If companies are also paying more in taxes, that’s less growth and dividends being kicked off, which is an important part of retirement plans.”