INFLATION!

Unless Congress and Future Presidents find that “Old Time Religion” for Balanced Budgets along with Zero Money Creation Expect Inflation to Run at an Annual Average per Year at

4.00% to 4.5% 

Value of $100 from 1913 to 2026

$100 in 1913 is equivalent in purchasing power to about $3,372.91 today, an increase of $3,272.91 over 113 years. The dollar had an average inflation rate of 3.16% per year between 1913 and today, producing a cumulative price increase of 3,272.91%.

This means that today's prices are 33.73 times as high as average prices since 1913, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 2.965% of what it could buy back then.

Example:

When factoring in how much you need today in order to retire with 2 million in today’s dollars is simply estimated return minus estimated inflation rate.  A 30 year old retiring at age 67 having 38 years of investing at an estimated return of 8% minus 4.5% inflation would require a deposit today of $532,032 or a monthly savings of $2,102.

An individual or family will need to take not just retirement but all aspects of finance very seriously!  Live well below your means almost to the point of being absurd is the goal.  This makes it possible, at least financially, to take on all of the ups and downs that life throws at us.