When it comes to planning for your retirement, there are plenty of elements one must consider. Roy Gagaza, the CEO and Founder at Journey Wealth Management, LLC, understands that situations change, and you must prepare yourself for any eventuality. Accounting for inflation is vital when planning for retirement, yet many people have no idea how to account for something that is not consistent and stable. Here is some advice that you may want to consider when you are planning for retirement and trying to account for inflation.
Roy Gagaza Gives an Explanation of What Inflation Is
Roy Gagaza explains that inflation is the decline in the purchasing power of your money over time. You can see this in action when you see the average cost of goods and services increase, and the value of your currency does not go as far as it once did. For example, consider the cost of gas from one decade to the next. It increases slowly but steadily has trended upward. It now costs more now than it did 25 years ago. Understanding inflation is important, as one amount now will not go as far 25 to 50 years into the future.
Roy Gagaza Explains Why It Is Important to Account For Inflation When Planning for Retirement
When you do not account for inflation, the money in your retirement account may not go as far as you thought it would. For example, if you spend $50 on groceries now, that amount may balloon to $75 or even $100 by the time you retire. This means you may need more money than you thought. Roy Gagaza encourages you to save more money when possible and anticipate changes in your spending habits. Nothing gives you more peace of mind than knowing you will be prepared for anything retirement might throw your way.
Roy Gagaza Details How You Can Plan For Inflation
When it pertains to inflation, no one knows precisely how much inflation to expect. A good rule of thumb according to financial professionals, like Roy Gagaza is to use the rule of 3 percent per year to account for inflation in the future. You can also use online inflation calculators to assist you.
The importance of calculating inflation is imperative when planning for your future. The purchasing power of your money tends to fluctuate, and being aware of the changes in the economy will better prepare you for retirement. Roy Gagaza wants to share his insight to assist you and put you in a position to get the most out of your retirement savings. His years of experience have proven that his expertise has been valuable to countless people. Ensure you set yourself for a stress-free retirement by putting away a little bit extra every month, and when the time comes to retire, you have the peace of mind that you planned for your future accordingly, even with inflation.
Don't Let Inflation Ruin Your Retirement Goals. Let Roy Gagaza Help You Plan For Your Retirement
Click on the link below to schedule a 15-minute Retirement Strategy Session.
Dacey Pease
Journey Wealth Management
+1 209 825-8888
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