For Mark Roberts’ Use:   As you plan for retirement, it’s normal and expected to focus on a particular savings goal. Or, perhaps you’ve already met that goal, and you just want to finish paying down your debts first. These are both worthwhile goals, and you should indeed set a goal based upon the income you need to generate in retirement. But just because you’ve met that goal, don’t take the leap into retirement just yet. There’s one more very important factor to consider.

That factor is inflation, and unfortunately it impacts all of us as the prices of goods and services rise over time. And the important thing to remember about inflation is that it’s sneaky! Have you noticed an increase in the price of milk, or eggs, or gas this year? Probably not, or perhaps you can recall that these items were a few cents cheaper last year. But overall, you might not be feeling terribly worried about prices as compared to last year.

That’s because inflation happens slowly, and you usually don’t notice a slight increase in prices each year. But over the course of a decade, you will most certainly feel a pinch, particularly if you’re living on a fixed income. After all, during your working years you can usually count upon raises that occur annually, or at least every few years. But once you enter retirement, your income might be fixed according to whatever distribution plans you set forth.

The bottom line is that whatever retirement income you establish today, it won’t stretch as far in ten or twenty years. If your retirement is a particularly long one, as it very well could be, thanks to longer life spans, you might find yourself living on an inadequate budget someday.

We can show you ways to protect yourself against inflation, by either helping your assets grow or establishing streams of income that gradually increase over the years. We want you to continue enjoying a comfortable lifestyle throughout retirement, so that you won’t have to worry about running out of money. Visit us for a consultation, and we can help you put together a long-term financial plan that protects your buying power and provides for a more stable retirement.