Beacon Financial Education talks about the risk factors which may be associated with your retirement plan and walks you through some tools which can help predict your retirement’s actual impact.
When planning for retirement, it’s best to have a realistic take on how your financial plan will achieve your goals and marks. Some may opt for a risk-based retirement plan and others may make their investments more conservatively. Either way, there are factors that may influence the result of your financial plan.
Inflation is defined as a general increase in prices and fall of purchasing power. Inflation can have a great impact on the goals of your financial plan. When inflation is high, we need to compensate and adjust for less potential purchasing power in the future. The average rate of inflation tends to fall around 2,0% YOY (year-over-year), so planning for 3,0% will put you in a good spot.