INFLATION CUTS THE VALUE OF YOUR MONEY IN HALF EVERY 22 YEARS.
Here's why:
On average, U.S. inflation has risen 3.21% every year for the past century, doubling prices every 22 years. So, if you're 45 years old today, you can expect to see prices double—and your money lose half its value—not once, but twice during your retirement years.
It's a reality you have to consider when saving and planning for retirement.
Based on your current income, future income needs, and inflation determine how much capital you will need to have a 30 year sinking fund at retirement. To modify the field just highlight the entire number including the dollar sign or percent sign and type over the number. If you are modifying a percentage field enter the new number as a decimal. 12% is entered as .12 or 4% is entered as .04.
THE 401K, IT'S NOT A RETIREMENT PLAN
RETIREMENT CHALLENGES
Living longer: increasing life spans create the risk you’ll outlive your savings.
Inflation: Rising healthcare costs, increasing general living costs, and taxes can erode your future purchasing power.
Market uncertainty: market volatility and low interest rates can have a devastating impact on your retirement income.
Long Term Care Facts:
68%: The probability that an individual over age 65 will become cognitively impaired or unable to complete at least two "activities of daily living"--including dressing, bathing, or eating--over his or her lifetime.
79: Average age upon admittance to a nursing home.
40%: The percentage of individuals who reach age 65 who will enter a nursing home during their lifetimes.
10%: The percentage of people who enter a nursing home who will stay there five or more years.
65%: The percentage of people who entered a nursing home who died within one year of admission.
Five months: The typical length of nursing-home stay for patients who eventually died in the nursing home.
Legal Disclaimer:
Financial Scenarios LLC and the Advisor that provided this document to you does not represent, warrant or guarantee financial or retirement planning performance or results. Nor does it represent, warrant, or guarantee that analysis of past financial performance can predict or is any indication of future financial performance.
Financial Scenarios LLC and the Advisor that provided this document to you does not recommend any particular asset allocation, security, or investment method nor does Financial Scenarios LLC or the Advisor that provided this document to you provide customized tax, legal, investment advice or strategies. Rates of return and calculations, if any, are for illustration purposes only and do not represent any specific investment results. Before taking any action, you should seek the advice of qualified legal counsel, accountants, and professional advisors.
