Don’t Let Inflation Wash Away Your Retirement Savings

This year, the US federal government is projected to run a deficit of $1.27 trillion.  In the last three years, from 2008 through 2010, we’ve added over $3 trillion to our national debt—which now totals over $14 trillion.  This type of borrowing is guaranteed to apply inflationary pressure to the already vulnerable US dollar.  Recently, I’ve been writing about the impact of inflation on the economy in general and retirement in particular.  Many people have emailed me wanting to know exactly what inflation would look like in terms of the some of the everyday things that people buy. I’ve been doing some research and I’ve compiled the following list that compares 11 items across a 20 year span.

Item	1978	1988	1998
New Home	$54,749	$91,777	$129,300
Average Annual Income	$16,975	$24,457	$38,l00
New Car	$5,405	$10,000	$17,125
Movie Ticket	$2	$3.50	$4.69
Gallon of Gasoline	63¢	91¢	$1.15
First Class Postage Stamp	15¢	25¢	32¢
Gallon of milk	$1.72	$2.02	$2.59
Pound of Coffee	$2.25	$3.49	$3.73
Dozen Eggs	48¢	69¢	88¢
Pound of Hamburger	87¢	$1.25	$1.40
Loaf of Bread	42¢	$1.08	$1.26

While these prices may seem “quaint” to us in the 21^st century, the importance of this information cannot be stressed enough. And as if the price increases over the last thirty years weren’t dramatic enough, the recent explosive increase in the size of the federal deficit threatens to dramatically increase the rate of inflation in the future. The U.S. Census Bureau calculates that the average retirement age is 62 and the average length of retirement is 17 years.  How would your retirement be impacted if the price of the average car increased by 31%?  Could you afford to eat if the price of hamburger rose by 62%?

Your retirement plan needs to have an inflation impact plan. If it doesn’t, you need to schedule a time to meet with us so that you can see how our proven system, The Personal Protected Pension Plan™ can provide you with a safe, secure retirement that helps protect you from inflation; a retirement that is tax advantaged and free from market losses is the best way to fight inflation.  Inflation is a very real threat to retirees and those planning for retirement, but with careful planning the risk can be minimized.  To schedule a visit call Millie at (866) 998-7699.