Chairman Bob’s Financial Literacy Memo
- The Chairman
- Jul 24
- 1 min read
Topic: The #1 Retirement Planning Mistake – And What to Do About It
Listen. Believe. Measure. If your goal in retirement is to worry about nothing, you’d better be prepared for everything. And the biggest blind spot? According to nearly half of all financial planners, it's underestimating inflation. That’s not just a technical mistake—it’s a lifestyle gamble.
Three Action Points:
Why inflation matters: Imagine you’ve saved $1,000,000. Now imagine that same money loses 3% of its buying power every year. Over 20 years, you’ve effectively lost nearly half its value. Retirement is about purchasing power, not just account balance.
Planning for a longer life: Americans are living longer. If you retire at 65, you could live to 90—or beyond. Plan for 30 years of expenses, not 15. Consider annuities, longevity insurance, and “bucket strategies” that segment funds for short-, mid-, and long-term needs.
Realistic investment returns: Many folks overestimate how much their portfolios will generate. Don’t assume 10% annual returns in retirement. A conservative 4% withdrawal rule helps balance income and risk. Factor in taxes, market volatility, and fees.
Final Word: “Hope is not a retirement plan.” Prepare like your future depends on it—because it does.
#RetirementReady #InflationImpact #FinancialLiteracy #PlanForLongevity #SmartInvesting #MoneyMatters #NGPFClassroom #ChairmanBobSays #ConservativeFinance #FutureProof #TeachInvesting #ListenBelieveMeasure
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