What Lesson Can We Learn From A Postage Stamp?
The U.S. Postal Services announced several new stamps to be issued in 2021. One of those new stamps will commemorate the statehood of Missouri in 1821. The stamp celebrates the bicentennial of Missouri as it became the 24th state in the Union on August 10, 1821. The picture on this stamp is of Bollinger Mill State Historic site and the photograph was taken by Charles Gurche. Art director Greg Breeding designed the stamp.
What Lesson Can We Learn From A Postage Stamp?
A nonsmoking couple of average retirement age, which is 62, has a joint life expectancy today of 30 years. That means there is a good chance one of you is living to age 92 and will be in retirement for 30 years.
We all know about inflation and how it it is the silent killer of your retirement plan and the example of this stamp will show us why. That Missouri stamp pictured above will cost you $0.50 cents today. That same stamp in 1990, which is 30 years ago, would have cost you $0.25 cents. In a span of 30 years the cost of a stamp has doubled.
With inflation averaging 2-3% per year, you can literally plan on your cost of living doubling throughout your retirement. If you need $50,000 per year at age 62 to live comfortable, you will need $100,000 per year at age 92 to maintain the same standard of living.
Retirement Only Has Two Possible Outcomes
1. Your money outlives you. This outcome leads to dignity, independence and creation of legacies.
2. You outlive your money. This outcome leads to regret, dependence on family and government, and death of any legacy you might want for your family.
If you don’t have a plan to double your income in retirement then, without realizing it, you actually have made a decision to choose outcome number 2.
The real risk in retirement isn't loss of money. It's loss of purchasing power.
At 80/20, our mission in life is to help people make a plan so they don’t lose purchasing power in retirement. It's a much shorter and less complicated conversation than you think and I would be glad to have that conversation with you.
You Need A Plan
A goal of retiring - without a plan - is simply a plan to run out of money. At 80/20 Financial Services we specialize in helping cooperative employees plan their retirement. We can show you how to turn your 401k and your R&S lump sum into a stream of income just like when you were working while also helping you achieve your desired financial outcomes in retirement.
If you are retired or nearing retirement, we can create a plan which will outpace inflation and accomplish any other retirement goals you might have. The consultation is free and without obligation. Contact us to set up a consultation.
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Brian Coleman/Electric Cooperative Retirement Specialist
80/20 Financial Services is an Independent Registered Investment Advisory Firm. We help Electric Cooperative Employees create their retirement income and investment plans.
