The attached chart shows the decrease in the purchasing power of $1 since 1870.  Clients almost always FAIL to plan for this.  Prices of goods and services basically double every 20 years.  A 50 year old today who projects that his portfolio will provide for $100,000 of annual income when he retires RARELY considers the ravaging impact of even mild inflation over time.  Twenty years from now, in the prime of his retirement, his $100,000 income would like have the purchasing power of $50,000 today!

Inflation-Sin-page-3

 

Source: www.advisorperspectives.com

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