Have You Filled Up Your Gas Tank Recently?
In just about a year’s time we’ve seen gas prices sky rocket! We buy most of our gas at Costco on Nevada. Who remembers gas in the $1.60 – $1.70 range?
I could fill up the truck for $50-$60. It was great. I filled up the other day and it was over $100! Gas has more than doubled in less than 18 months or so. That’s over a 100% increase.
When we do our planning with you we always include an inflation factor. Some have questioned why we use 2.5% – 3.0%. It’s for times like these. We’ve gotten accustomed to lower inflation in the last few years. Now…it’s a wakeup call.
I’m including a couple of articles that state emphatically that the buying power of Social Security has been decreasing dramatically for decades. Recipients became more aware last year because of the biggest increase in inflation in a while.
The second article about inflation goes into more depth and may be beyond your interest. I don’t believe most of the public understands well enough all the kinds of inflation as well as the purchasing power of Americans being destroyed.
What is the difference between wage inflation, price inflation and asset inflation? Finally, are we currently having steady inflation or erratic inflation? I bet you didn’t know there were all different kinds of inflation. This will be a big deal in the future.
Inflation can never be ignored in our planning for your successful 2nd half! If you’re a client, you can be assured we have incorporated this into your retirement plan. If you’re not a client – do you know how your advisor has calculated inflation into your plan? Make sure to ask! And if you ever you have questions, want a second opinion, or don’t have an advisor – please, please, give me a call…
See more in this Fool article, Why Retirees Are Losing Ground on Social Security, and this New York Times article, Time to Panic About Inflation? 5 Questions to Ask
If you’re unable to retrieve either of these articles let us know and we’ll send you a copy. Call me if you have any questions about the content.
