Hey everyone,
I've enjoyed browsing these forums since discovering this website a few weeks ago.
I know this is probably a ridiculous question... but I spend a lot of time thinking about inflation and how that affects the number that I have in mind for retirement. I'm 22 and think it would be great to retire sometime in my 50's if I so wish (though hopefully I'll enjoy my job enough not to). I realize that it's probably a wasted effort for someone my age to have a number in mind... but I think it's helpful to have some type of tangible goal.
In today's dollars, I feel that $1.5M would provide a great retirement for the life I would like to live. However, $1.5M today is the equivalent of $6M forty years from now, assuming 3% annual inflation. I find that totally overwhelming though potentially achievable depending on what I pursue professionally.
How do you all factor in inflation in your planning, if at all? Does it affect your goal?
Lifestyle wise I know that I don't want children or a big house, but otherwise would like to live in a nice building, eat well, travel, etc. So maybe my number in today's dollars is too big to begin with? Any thoughts?
I've enjoyed browsing these forums since discovering this website a few weeks ago.
I know this is probably a ridiculous question... but I spend a lot of time thinking about inflation and how that affects the number that I have in mind for retirement. I'm 22 and think it would be great to retire sometime in my 50's if I so wish (though hopefully I'll enjoy my job enough not to). I realize that it's probably a wasted effort for someone my age to have a number in mind... but I think it's helpful to have some type of tangible goal.
In today's dollars, I feel that $1.5M would provide a great retirement for the life I would like to live. However, $1.5M today is the equivalent of $6M forty years from now, assuming 3% annual inflation. I find that totally overwhelming though potentially achievable depending on what I pursue professionally.
How do you all factor in inflation in your planning, if at all? Does it affect your goal?
Lifestyle wise I know that I don't want children or a big house, but otherwise would like to live in a nice building, eat well, travel, etc. So maybe my number in today's dollars is too big to begin with? Any thoughts?