Defining Moments in Retirement Planning


Defining Moment #1: Inflation 

Retirement planning, sooner rather than later, is crucial because your money will never be worth more than it is today.  Due to inflation the buying power of a dollar decreases over time.  The buying power of $1,000 today with a 3% inflation factor built in will have the buying power of only $412.00 in 30 years.  Not only has inflation adjusted the price of things we purchase today but on a second front, it has diminished customer service, professionalism and direct customer contact.  Planning for retirement you must take into consideration inflation or you will simply outlive your money.

Effect of Inflation on Retirement.jpg 

Defining Moment #2: Taxation 

Retirement planning must take into account the taxation that will occur in the distribution phase of your retirement.  This may be the lowest tax bracket you will ever be in.  To pay for the government burden of debt, every person in the U.S. would have to pay about $207,000.00 and for every household $846,000.00.  Telling you this is not to scare you but rather to make you aware that all conditions are in place for everyone’s taxes to increase.  Future taxes that you pay will be one of the largest transfers of your money that you will ever make. Traditional retirement planning will avoid this problem right now until it becomes a crisis for you.   

Retirement Planning Conclusion

The facts are, we have a declining workforce in the United States.  We have an aging population living longer on government programs.  We have a government that spends every dollar of revenue they take in.  The only source of revenue for the Federal Government comes from collecting Taxes.  From the government’s point of view, do you think they are going to lower taxes or raise taxes, increase or decrease government benefits.  Based on this information you have two defining moments to consider when planning for your retirement.   It is time we talk so call me at 303-798-6363 or contact me.