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Inflation, why you should be concerned about it.

Public Enemy Number One: Inflation!!

Inflation is a big problem. While you're working, it doesn't seem like any big deal because you are on an increasing income. You do get raises, however infrequently. When you are finally retired and on a fixed income, your buying power will decrease. This is nothing to wait and be surprised about! If Inflation grows at its current rate your assets in a passbook savings account or a certificate of deposit are stagnating.

Monthly Inflation

Although Inflation has gone up and down it has always averaged at least 3.5% per year (a real average of 5.9%). This is a small number with Big Impact. Just think back to when a '67 Mustang cost $3,500. Have you seen that Ford lately? Try $30,000.

Cumulative Inflation

Some people tell me, "I'll have everything paid for when I retire." With the average life expectancies growing, you need to prepare for the long-term effects of inflation. In other words, don't outlive your money! For more information on inflation and on how inflation will affect your retirement or savings, visit BCI Data.