I know you are probably getting more agitated at the gas pump when you fill up lately, but besides shaking your fist in the air when you realize that you don’t have any gas points left, what other damage is it doing?
Inflation has become a very hot topic lately. And it is for good reason. Sure we are paying almost double for fuel right now but if that’s all it did we could probably suck it up and deal with it.
The hard part is that when energy prices go up, all prices go up, and the rest of the supply chain is affected. In other words, it costs more for farmers to run their tractors which means that when they sell their crop they need to sell it for more. Then the truckers need to charge more to bring it from farms to stores etc.
For our Elite clients we use a tool that helps them really visualize where they will be in retirement. Not only do we find out what year they stop having enough money in retirement we can find out how stable their cash flow will be and how much they will be leaving to their heirs, and much more.
So what damage can inflation have on your retirement goals?
Let’s study these two pictures and you can decide. Each of the pictures are of the same situation. The only difference is we changed the inflation assumption.
This hypothetical client has done a good job saving and investing. They want to retire early and in the first picture we see that their retirement is nearly fully funded except a little (red) uncertainty in the last 4 years.
In this picture the only thing we changed is the inflation number to 7% (currently the published inflation rate is 7.87%). Just look how this one deteriorated. There are now 24 years that need more retirement income.
The government’s choices of printing money along with other monetary policy is directly affecting your livelihood.
If you don’t think retirement is a battle that you have to prepare for, expect to see a lot of RED in your future.
Our goal is to help our clients gain peace of mind. With proper planning and the right strategies it is totally possible.
Remember — It’s Your Time…