“Back in my day, gas cost a quarter a gallon!” How many times have we all heard this? Whether it is an uncle or grandparent, we have all been told about the good old days when candy was a penny, gas was a quarter, and you could survive a whole month on sixty dollars. Wouldn’t it be great to live in those times? It seems like everything was so inexpensive! It rarely dawns on us though, that when we have grand kids or great grand kids, we will brag to them about when candy was a dollar, gas was two, and you could survive on a thousand dollars or two a month!
As the years pass by inflation increases and the loss of purchasing power happens. Many of us accept this as a fact of life and just hope that we get our annual raise to offset the difference. This strategy is fine, but what happens when you go to retire? Does your investments strategy include the lack of earned income as well as the impact of the inflation and loss of purchasing power on your accounts?
The first couple of years may be fine, and you may not feel the difference. But as time moves on, you may be faced with the decision of tightening your belt or go going back to work! Without proper planning that includes purchasing power risk, the money you worked so hard for may start to run out!
At Crystal Clear Finances we believe that you shouldn’t have to sacrifice your lifestyle in retirement or re-enter the work force later on in life. We believe in providing the clarity needed so that you can create wealth… Wealth that allows you to live the same lifestyle of today, during retirement, adjusted for inflation!