Retirement Planning: How To Keep Up With Inflation (2021)
- 3 years ago
When Ford introduced the Mustang back in 1964, the sticker price was $2,368. You could get yourself the convertible model for just a few dollars more, $2,814.
Today, a Ford Mustang would set you back $26,670; a convertible, $32,170. You can quickly spend over $73,000 for a top-of-the-line Mustang.
Why does it cost so much more today than in 1964?
Inflation.
Inflation, simply put, is the increase in the price of the goods and services that we purchase and consume. We see it in everyday things such as groceries and in things that we may only buy a few times in our lives like houses. Inflation is everywhere and can impact everything, but what causes inflation and why should we worry about it?
Inflation can be caused by a number of things.
Government policy, scarcity of resources, increased demand for certain goods can all cause inflation.
For example, let's say that everyone wants to buy the latest Ford Mustang.
Not expecting the latest Mustang would be so popular, Ford didn't increase the number of Mustangs it built.
But some people want a Mustang so badly that they are willing to pay more than others to own a Mustang.
As a result, the price of Ford Mustangs begins to go up as more people are willing to pay more to own one. Suddenly, you have inflation.
That's just one example and a pretty simple one.
Luckily, your financial professional can discuss ways various insurance products and financial strategies can help account for inflation in your retirement income strategy.
Ask The Annuity Expert to help you explore options that may be appropriate for you.
Learn More: https://www.annuityexpertadvice.com/inflation-in-retirement/
Today, a Ford Mustang would set you back $26,670; a convertible, $32,170. You can quickly spend over $73,000 for a top-of-the-line Mustang.
Why does it cost so much more today than in 1964?
Inflation.
Inflation, simply put, is the increase in the price of the goods and services that we purchase and consume. We see it in everyday things such as groceries and in things that we may only buy a few times in our lives like houses. Inflation is everywhere and can impact everything, but what causes inflation and why should we worry about it?
Inflation can be caused by a number of things.
Government policy, scarcity of resources, increased demand for certain goods can all cause inflation.
For example, let's say that everyone wants to buy the latest Ford Mustang.
Not expecting the latest Mustang would be so popular, Ford didn't increase the number of Mustangs it built.
But some people want a Mustang so badly that they are willing to pay more than others to own a Mustang.
As a result, the price of Ford Mustangs begins to go up as more people are willing to pay more to own one. Suddenly, you have inflation.
That's just one example and a pretty simple one.
Luckily, your financial professional can discuss ways various insurance products and financial strategies can help account for inflation in your retirement income strategy.
Ask The Annuity Expert to help you explore options that may be appropriate for you.
Learn More: https://www.annuityexpertadvice.com/inflation-in-retirement/