Fiscal Cliff or No Fiscal Cliff: Will Increased Taxes and Inflation Ruin Your Retirement?
While the “fiscal cliff” has dominated the headlines recently, the more important question facing our nation is whether or not we will be able to bring our deficit under control. We simply can’t sustain our current track.
As an individual, you need to keep in mind the impact that runaway government debt may have on you and your plans for retirement.
The real threat created by this runaway borrowing, and the mechanics necessary to finance it, is inflation- and the tax increases necessary to pay for it. What does that mean to you?
Thirty years ago, a gallon of gas cost $1.35 on average. Today, as you probably know, the price is nearly three times that rate in some parts of the country.
And this trend is not limited to gasoline: house prices, food prices, energy prices, and the prices of many other commodities have soared through the roof.
Most Americans are familiar with the concept of inflation and understand that inflationary pressure makes it harder to get by, financially, on a daily basis.
However, most Americans are missing the important lesson to be learned here.
When planning for retirement, most people anticipate a time period of approximately thirty years. But yet, they fail to ask a simple question: If inflation drove the cost of living up so dramatically over the last thirty years, what will it do over the next thirty years?
If gas prices continue to increase at the same rate in the future, in thirty years a gallon of gas will cost close to ten dollars! Food and other living costs would see a similar cost increase. What type of impact would these massive cost of living increases have on your retirement lifestyle? Could you afford to pay ten dollars for a gallon of gas?
The answer is grim for most prospective retirees.
There is good news, however. While inflation and increased taxation is a major threat to investors, with proper planning its effect can be mitigated.
At The Hidden Wealth System, we can help. You CAN out-fox inflation! Don’t risk running out of money during your retirement. Protect your assets against the corrosive power of inflation and the danger of increased taxes. Email Millie, our Client Concierge, at millie@TheHiddenWealthSystem.com or phone her at (866) 998-7699. Please provide Millie with the two best times to contact you. Due to the continuing economic volatility, we are currently experiencing a high volume of inquiries. Providing two contact times will insure that she is able to reach you.
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