6 Things That People Get Wrong About Retirement
Retirement planning can be a complicated process – and surveys suggest that most workers haven’t even attempted a guess. But even those who have can overlook some pretty significant factors that can have a dramatic impact on retirement readiness. Here are some critical factors that are easy to get “wrong.” The Cost of Inflation Twenty or 30 years from now, prices are likely to be different than they are today, and for many, those prices will increase – and perhaps particularly costs of critical life aspects like health care. Consider that, overall, the average inflation rate for 2018 was 1.9%. It’s not that all prices will always go up – but they often do, and might increase faster than your income. Think of it as the “magic of compounding’s” evil twin… There’s a calculator that you might find interesting at http://www.usinflationcalculator.com/ . The Cost of Taxes A key part of the incentive for retirement saving in a 401(k) is the ability to postpone payin...