Latest News / Retirement In Sight: March 2018
Retirement In Sight: March 2018
March 30, 2018
What Will $50,000 Be Worth in 25 Years?
If you are on the verge of retiring, this question is well worth asking. You cannot know what the exact answer will be; you can, however, anticipate that it will be worthless. Inflation will exact a slow, but significant, toll on your retirement savings. Historically, consumer prices have risen about 2-3% per year. Your retirement fund should be growing at least that much annually; if not, your income and savings could effectively remain at current levels, while the goods and services you rely on grow more expensive. This implies a compromise to your lifestyle.
The lesson here is that you may be taking a risk if you turn away from equity investments – the risk of losing purchasing power. While the market’s ups and downs can be pronounced, the growth potential of stocks and other equity investments remains strong through market cycles. You also need to account for inflation as you save for retirement – you may need to save more than you think to help counteract inflation’s effect. If inflation hypothetically stays at just 2% a year for the next 25 years, today’s $50,000 in cash will buy the equivalent of $30,476 worth of goods and services in 2043.1
On the BRIGHT SIDE
Recent research from Oregon State University concluded that healthy seniors who retired near age 66 (that is, at or near Social Security’s Full Retirement Age) had mortality rates 11% lower than seniors who retired earlier.2
“I have very strong feelings about how you lead your life. You always look ahead, you never look back.”
- Ann Richards
GOLF TIP: Avoid letting your mind replay your mistakes
When you hit a bad shot, accept your error and move on. Mentally reexperience the good and great shots you hit instead. Think of the next shot as the next great one; visualize the result you want.
BRAIN TEASER: Family Matters.
What relation would your father’s sister’s sister-in-law be to you?*
DID YOU KNOW?: A literary gamble paid off
Among other works, Fyodor Dostoevsky is known for his novella The Gambler. Dostoevsky wrote that work in only 26 days, out of desperation. He was heavily in debt from playing roulette and hoped it would sell enough copies, so that he could have sufficient money to pay his creditors.3
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice may not be relied on for the purpose of avoiding any Federal tax penalty.
1 - fool.com/retirement/2018/03/11/3-mistakes-that-could-derail-your-retirement.aspx [3/11/18]
2 - nextavenue.org/healthier-not-retire/ [2/15/18]
3 - pocketpenguins.com/the-gambler-and-a-nasty-business [3/12/18]
Securities and insurance products are offered by Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered by Cetera Investment Advisers LLC. Neither firm is affiliated with Centier Bank where investment services are offered. Advisory services may only be offered by Investment Adviser Representatives.
Securities and insurance products offered by Cetera Investment Services are: *Not FDIC insured * May go down in value * Not financial institution guaranteed * Not insured by any federal government agency * Not deposit products.
Investment Executives are registered to conduct securities business and licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase brokerage services to persons outside of the United States.