2 Retirement Income Powerhouses For Inflationary Times

The article emphasizes the importance of repositioning investment portfolios towards higher-yielding, inflation-resilient income products due to persistently high inflation. It highlights the risks of insufficient income growth and warns against the dangers of significant net asset value (NAV) destruction and potential dividend cuts. The author, Roberts Berzins, discusses two high-yielding, inflation-protected income investments. He reflects on changing views about inflation in the context of macroeconomic trends and outlines his background in finance, including expertise in REIT frameworks and capital market development.

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Roberts Berzins, CFA

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Summary

Persistent, structurally elevated inflation necessitates repositioning portfolios toward higher-yielding, inflation-resilient income products.
The risk is that on a real portfolio income growth basis, the necessary wealth accumulation (or preservation) won't simply be there.
Yet we have to be cognizant of not falling into the other extreme of elevated NAV destruction or dividend cut risks.
In this article, I elaborate on two high-yielding, inflation-protected, and durable income machines.

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I remember that not that long ago (before COVID-19) there were some macroeconomic pundits who argued that inflation is dead. It was about the globalization, aging population and increased innovation that were to keep a tight lid on the inflation. And the economic data on

This article was written by

Roberts Berzins, CFA

15.63K Followers

Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

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