Recently, I wrote an article here titled, It’s Not Much, But It’s All I Have . This has been a very common reaction among people when talking (or not talking) about their money. We continue to deal with economic uncertainty, and its human nature to be afraid of losing it. However when we let fear control our thoughts, we also prevent growth. Money closed inside of a fist serves no purpose and can’t grow. To grow your funds, you have to open your hand – and your mind.
“Hold on loosely….but don’t let go. If you cling too tightly….you’re gonna lose control.” (.38 Special)
Why do we need to grow our money? One word – INFLATION!
According to the US Bureau of Labor Studies, $400,000 of taxable income in 1953 is equivalent to $2.8 Million in today’s dollars.
When you decide to retire, you could easily be retired for 20 years or more. Do you believe that the costs of living for you will go up – or stay the same? Consider this – in 1990, a loaf of bread costs about $1.00. Today, we pay an average of $2.69 for the same loaf. A postage stamp was only .08 in 1990, while today it’s .44….and climbing.
If you have been on a fixed income for the last 20 years, you have suffered a 40% loss of purchasing power. Plain and simple - your money must continue to grow over the long term to keep up with rising costs. You just can’t keep stuffing it under a mattress, which is paying about the same interest as a CD today.
Please Contact Me for more information on how to protect your long term savings and USE your money wisely. I can help you create lifetime income from an IRA or Roth IRA. If you live in the South Bend, IN area, I am also happy to help with 401(k) rollovers or IRA reviews. You can follow me on Twitter, Linked In, or Facebook.
You can also listen to my weekly radio show, Improving Your Financial Health on WHME-FM in South Bend, and archives are available for listening on my website. My book, Help My 401(k) Has Fallen – And Must Get Up is helping everyday people to get their 401(k) plan back on its feet and working harder. Contact me about how to get a copy.