Comments on: Inflation and Your Retirement Plan http://allfinancialmatters.com/2005/11/30/inflation-and-your-retirement-plan/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: Suresh http://allfinancialmatters.com/2005/11/30/inflation-and-your-retirement-plan/comment-page-1/#comment-662 Suresh Sun, 11 Dec 2005 21:53:46 +0000 http://www.allthingsfinancialblog.com/?p=169#comment-662 Can the effects of inflation on the nominal retirement income target be mitigated by increasing one's annual investment amount by the inflation rate? Many on-line calculators assume that you are going to invest the same amount every year. But, given the chart JLP has provided, doing so might be a sure-fire strategy for missing the target. A way to approximate the inflation rate would be to hold the line on fixed and variable household operating expenses, and allocate bonuses, cost of living adjustments, and raises first to increasing the annual investment amount. Such a strategy may not dramatically increase your standard of living in the short term. But, you have to ask yourself: what are you working for, and how long do you want to be working? Peace. Suresh Can the effects of inflation on the nominal retirement income target be mitigated by increasing one’s annual investment amount by the inflation rate? Many on-line calculators assume that you are going to invest the same amount every year. But, given the chart JLP has provided, doing so might be a sure-fire strategy for missing the target.

A way to approximate the inflation rate would be to hold the line on fixed and variable household operating expenses, and allocate bonuses, cost of living adjustments, and raises first to increasing the annual investment amount. Such a strategy may not dramatically increase your standard of living in the short term. But, you have to ask yourself: what are you working for, and how long do you want to be working?

Peace.
Suresh

]]> By: Rick http://allfinancialmatters.com/2005/11/30/inflation-and-your-retirement-plan/comment-page-1/#comment-624 Rick Wed, 07 Dec 2005 15:51:26 +0000 http://www.allthingsfinancialblog.com/?p=169#comment-624 I read a Fortune Magazine with a similar theme ("what is your number?") and it really got me thinking. I have radically upgraded my number so that a) I don't stop saving and b) I actually have enough. cheers Rick I read a Fortune Magazine with a similar theme (”what is your number?”) and it really got me thinking.
I have radically upgraded my number so that a) I don’t stop saving and b) I actually have enough.

cheers
Rick

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