Outliving your income!

That is a grim reality for millions.

Growth is too slow to bring higher wages, but costs for everything are rising fast

Outliving your income

A long time ago many people did not live much past the age of 70-80.  That has all changed.  Now people are living longer than ever.  The retirement they planned for only went to age 70-80.  What is one to do after that age?

Juliette Cubanski, Kendal Orgera, Anthony Damico, and Tricia Neuman

What is inflation?

To first understand why we’re having the retirement crisis, it may help to understand inflation and how it will affect the future value of your money.

*40 year old in 2017 using the CPI Inflation Calculator in the past to determine what future costs will be when individual turns 80. The chart is assuming that the individual does not have a car payment at 80, no serious health ailments, and no other debt and the individual will have to pay a total of $68,580 per year and that is someone who is “DEBT FREE” In other words, this person is not taking any vacations, no presents for grandchildren, no hobbies, and movies, etc.

Ask yourself questions are my property taxes more than the $3,327 per year like what is in the chart? What if you go to eat more than 2x a month? What if you have other expenses not accounted for? What if there are more innovations that we will pay for in the future? In other words, because of inflation assuming that you don’t have any debt, just household expenses the money you are saving today has to be enough to pay tomorrows prices, and the longer we live, the longer that money has to last!

2017 Costs 2057 Projected Costs
Electric $157 $672.48
Property Tax $277.25 $1187.52
Cell $100 $438
Medicare $121 $421
Personal Care $80 $342.67
Dining Out (2x) $150 $428.33
Internet $50 $214.17
Groceries $436 $1867
Gallon of Gas $2.20×15=$33.71 $144.71
Total for month $1,404.96 $5715.88
Total for year $16,883.54 $68,580

Consumer Price Index (CPI), measures changes in price level of market basket of consumer good and services purchased by households.

To get an idea of how inflation will affect your future spending ability, use the CPI Inflation calculator below.

Housevisor's Inflation Calculator

Please See Your Result after calculation.

How did we get to this point?  What is the information that wall street and your financial advisors not telling you?

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