What are your numbers?

Numbers are very important to my practice. Annualized rate of return, how much you have to invest, how long will you live? These all figure into my planning done for my clients. Here are a few key numbers I would like you to think about:

How much will inflation impact your investment to and through retirement? Here are a few famous quotes regarding inflation:
“Inflation is when you pay fifteen dollars for a ten-dollar haircut you used to get for five dollars when you had hair.” –Sam Ewing
“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” –Ronald Reagan
“Inflation is the crabgrass in your savings.” –Robert Orben

Right now we are seeing some of the highest inflation we have seen in years. When going out to purchase anything, think about whether the item is a need or a want, then shop for the best prices.

What is the average rate of return you are earning? Please keep in mind that we take a long term look at the investments we manage. Let’s look at the S&P 500, in my opinion this is the broadest index used as a measure today.
Historic benchmarks for the S&P: For the previous 10-year time period (2010-2020) the annualized (nominal) return was 13.9%.The average annualized return since its inception in 1926 is 10.49%
The highest annual returns in that time period were 29.6% in 2013.
The lowest annual returns were -6.24% in 2018.*

Health care cost can put the biggest dent in the best planned retirement. According to Fidelity’s Retiree Health Care Cost Estimate, a 65-year-old couple retiring in 2022 can expect to spend $315,000 in health care and medical expenses throughout retirement. And, this does not include any money that may need to be spent on long-term care needs.

*Historical returns from Fidelity Institutional.com

These are just a few numbers to think about as you plan your retirement. If you want help with these, please contact me at nancy@financialgroup.com or (407)-869-9800.