Today in Markets & Money: “What Today’s Inflation Outlook Means for Your Retirement Math”

🏷️ Inflation Outlook

The CPI is at 322.13 (core 328.66), with annual inflation running around 2.7%. The market thinks it’ll cool closer to 2% over the long haul:

• 1 year: 2.59%
• 5 years: 2.13%
• 10 years: 2.11%
• 30 years: 2.30%

Translation: no runaway inflation monsters hiding under the bed. For retirement math, that’s good news — predictable costs make planning easier.

💸 What this means for your wallet:
If you’re building a retirement plan, assume “moderately annoying” inflation, not “apocalypse pricing.”

💵 Treasury Yields (Long-Term View)

• 1-year: 3.82%
• 5-year: 3.74%
• 10-year: 4.28%

The 10-year sitting above 4% means long-term bonds finally earn real returns again. That matters for retirees who want stability without watching stocks like hawks.

💸 What this means for your wallet:
Your retirement portfolio doesn’t have to be 100% stocks just to outpace inflation. Bonds are back on the team.

📈 Stocks vs. Bonds

The S&P 500 is up 0.54% today, +2.42% in the past month, +17.22% year-over-year. Stocks are strong, but expensive. Bonds are paying more than they have in years.

💸 What this means for your wallet:
This is the classic rebalancing moment: shave some profits off your stocks, redeploy into long-term Treasuries or bonds. Don’t get greedy.

👵 Retirement Moves: Roth vs. 401(k)

With stable long-term inflation, the Roth vs. 401(k) question comes down to tax brackets:

• If you expect higher taxes later → Roth IRA now.
• If you expect lower taxes later → Traditional 401(k) now.

Stable inflation means the decision is about you, not the economy.

🎤 Fed Watch

Powell hinted at a potential rate cut in September. That’s why markets are rallying — stocks love cheaper money. But for retirees, it’s a reminder: today’s 4%+ bond yields won’t last forever.

💸 What this means for your wallet:
If you like guaranteed income, lock some of it in now before rates slip.

🧾 Bottom Line

The long-term picture looks stable: predictable inflation, stocks still hot, bonds finally worth owning. For retirement savers, that’s a rare window to balance growth with safety.

💡 Money Move of the Day

Take 30 minutes to rebalance your portfolio. If you’ve been riding stocks higher, peel some gains off and buy bonds while yields are still strong. Your future self will thank you.

👋 This is why I built Ask Linc — an AI investing app that takes your actual portfolio + today’s market and answers:

👉 “Should I shift more into bonds at today’s yields?”

That’s the kind of call Ask Linc makes clear → asklinc.com