In this video, I discuss the inflation rate from 1914 through March of 2024. I also discuss the inflation rate over a subset of this timeframe, specifically, my lifetime. I cover the minimum, median, average, and maximum inflation rates over these periods.

Ultimately, I am looking for input from you as to the rates you are using in your retirement plan for optimistic, average, and pessimistic scenarios.

Disclaimer: Nothing contained in this video should be construed as Financial, Investment, or Retirement Advice. This is just a discussion regarding what I am thinking about. I have no expertise or formal training on this topic. Please seek out qualified investment / retirement planning advice from a Certified Financial Planner (CFP) professional. Also note, I do not guarantee that the rates discussed here are accurate. This information was obtained doing a simple Internet search….(read more)

LEARN MORE ABOUT: Qualified Retirement Plans

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Inflation is a crucial factor that must be considered when planning for retirement. It is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. When planning for retirement, it is essential to use the correct inflation rate in order to make accurate financial projections.

Many people make the mistake of underestimating the impact of inflation on their retirement savings. They may use a lower inflation rate than is actually experienced, leading to unrealistic expectations about their future purchasing power. In reality, inflation can erode the value of money over time, especially for long-term investments such as retirement funds.

So, what inflation rate should you use to model out your retirement plan? According to financial experts, a common rule of thumb is to use an average inflation rate of 3% to 4% per year. This rate takes into account historical inflation rates in the United States over the past few decades. However, some experts argue that this rate may be too low, especially considering the rising costs of healthcare and education.

In fact, some financial planners suggest using a higher inflation rate of 5% or even up to 6% in retirement projections. This higher rate accounts for potential increases in the cost of living, as well as unexpected inflation spikes in certain sectors of the economy. Using a higher inflation rate can help ensure that you are adequately prepared for the future and that your retirement savings will be able to sustain you throughout your golden years.

It is also important to note that inflation rates can vary depending on your specific circumstances. For example, retirees may experience different inflation rates depending on factors such as healthcare costs, housing expenses, and travel expenditures. It is important to consider these factors when calculating your personal inflation rate for retirement planning.

In conclusion, when planning for retirement, it is crucial to use the correct inflation rate in order to make accurate financial projections. Using a higher inflation rate than you may initially think is necessary to ensure that your retirement savings will be able to support you for the rest of your life. By taking inflation into account and using an appropriate rate in your retirement plan, you can better protect your financial future and enjoy a secure and comfortable retirement.