PART 3 OF 3: Money Protection To Create The Retirement Of Your Dreams

Inflation affects everyone, but it's vital for those getting closer to retiring.

You might wonder what inflation is and why it’s such a big deal for creating the Retirement Of Your Dreams.

Well, don't worry! I'm here to explain it to you!

Hi! I'm Jason Bergquist, the owner and founder of RetirementOfYourDreams.com.

Today, we’re diving into Part 3 Of 3: Money Protection To Create The Retirement Of Your Dreams.

If you missed Part 1 about Long-Term Care, click HERE to watch Part 1 in this series.

And if you missed Part 2 about Death Benefits, click HERE to watch Part 2 in this series.

In today’s video, we’ll delve into Inflation.

1. How To Protect Your Retirement Purchasing Power from Inflation

We'll discuss "purchasing power," like how much your money can buy in the future regarding your retirement.

2. How To Prepare For Inflation On A Fixed Income

Many retirees live on a "fixed income," meaning they get a set income each month. But what happens when prices keep going up?

3. How To Balance Fixed Income and Expenses ... Even During Inflation 

We want your income to cover your expenses for at least two years. But with inflation, that can be a challenge. 

Let me introduce myself if we still need to meet. I'm Jason Bergquist! 

I joined this business to help people create the Retirement Of Their dreams. 

I've been doing this for over 20 years through the ups and downs of the markets. 

My whole goal is to help educate people. Help them understand how to set up the retirement of their dreams and bring hope back into their lives.

I realized this was my calling in 2010 when I was going through a divorce. At that time, I was financially low, and I realized that I wasn't practicing what I preached. 

So, I committed to practicing what I preached and became an Independent Financial Professional and a Certified Financial Fiduciary. 

This experience allowed me always to do what's in my client’s best interests. 

Now, I have a team of experts helping me figure out all of the best options that are out there to empower you to create the Retirement Of Your Dreams. 

Okay, let’s jump into Part 3 Of 3: Money Protection To Create The Retirement Of Your Dreams. 

We’ll delve into these points one by one to help you understand how to protect your money from the effects of inflation. 

Let's start with our first point, which is all about "purchasing power" or "buying power."

Now, what does that mean? It's all about how much stuff you can buy with your money.

And guess what?

Inflation affects this!

Inflation is like a sneaky thing that makes everything more expensive over time.

Think about it this way:

When I was a kid, I asked my dad how much our first house cost. He told me it was around $54,000. That might sound like a bargain, right?

But here's the twist:

Back then, in the early 1980s, the interest rate on the mortgage for that house was a whopping 18%!
That's like paying a lot more money over time. 

When you think about your future and the retirement of your dreams ...

... you need to consider inflation! 

It's like a guest at the party that we didn't invite but has shown up anyway.

So, here's the deal: 

It’s best to look at what you have in place right now.

Are the ways you're planning to earn money in the future going to increase? 

And if they do, will they rise enough to keep up with the rising prices? 

Let's put this in perspective: 

In 1980, you could buy a lovely home for around $54,000. 

But if we fast forward to 2023, you'll be hard-pressed to find a home you'd want to live in for less than $400,000. 

That's a big difference! 

So, you see, it's crucial to consider how inflation affects your purchasing power and how you can ensure your income keeps up with those rising prices. 

Now, let's dive into the second point, which is all about "fixed income."

You've probably heard the term "fixed income" when discussing retirement. 

It means that during retirement, you have a set amount of money that comes in every month to cover your living expenses. 

But here's the kicker: 

Many folks forget about inflation. 

As we go through life and enjoy those retirement years, inflation keeps doing its thing. It's like a slow but persistent creeper that makes things more expensive. 

In the past, when we helped folks plan for retirement, we used to assume that inflation would be around 2% to 3%. 

We thought that was a safe bet. 

But things have changed, my friends. 

With the rollercoaster of events, especially after COVID-19, inflation rates have climbed nearly double digits. That's like prices jumping up faster than a squirrel on a sugar rush! 

So, here's the deal: 

Consider a higher inflation rate, maybe 5% to 8%, when planning for the Retirement Of Your Dreams!
We might run into trouble if we don't do that and stick with our old 2% to 3% plan. 

Imagine this: think back to the wild ride of egg prices during the COVID-19 pandemic. 

Prices went all over the place, right? 

And when you go out to eat now, you've probably noticed that even your favorite Tuesday night $5 movies have crept up to $5.95. 

Sneaky, right? 

All these examples show how inflation affects your finances and daily life. And that's just the tip of the iceberg. 

Now, let's dive into teaching point three, discussing "fixed income versus fixed expenses."

We all dream of having more monthly income than we need to cover our bills.
That's the sweet spot. 

It means we don't have to think about returning to work or worrying about running out of cash because the money rolling in comfortably covers our expenses. 

But hold on, here's the plot twist: 

Our expenses would likely outweigh our income if we didn't plan for that pesky inflation. And that's not a fun situation to be in. 

Let's consider an example using social security and pensions. If you're receiving social security or plan to in the future, you probably noticed a nice bump in your payments from 2022 to 2023. 

It felt pretty good. 

That increase averaged around 5.66%. 

That sounds great ... 

... but did it keep up with the rising costs of goods and services? 

Here's the scoop:

• Limited Coverage Period: Employer-sponsored life insurance typically covers you only while you're employed with that company.

If you change jobs or retire, you may lose this coverage.

• Coverage Gaps: Life insurance needs often extend beyond your working years.

If you rely solely on employer-provided coverage and something happens when you're not employed, you may not have the protection you need.

• Accidents and Timing: Accidents can happen at any time, and life insurance is there to provide financial security for your loved ones.

If you're between jobs or transitioning careers ...

... you might not have coverage when you need it most.

Given these considerations, it's advisable to supplement your workplace life insurance with a personal life insurance policy.

This ensures that you have continuous coverage, even during employment changes or retirement.

Additionally, personal policies often offer more flexibility and can be tailored to your specific needs.

So, while it's a smart move to enroll in your employer's group insurance plan ...

... it's equally important to explore additional coverage options to create a well-rounded insurance strategy that provides adequate protection throughout your lifetime.

Term life insurance is a popular option for many people due to its affordability and flexibility.

It's like trying to catch a race car with a bicycle.

Now, some pensions do have cost-of-living increases, which is fantastic. But not all annuities come with this benefit. 

So, here's the deal: 

If you're banking on social security or a pension to be your financial saviors during retirement ... 

... and you're counting on those cost-of-living adjustments to keep up with inflation ... 

... you might need to rethink your strategy. 

History shows that these adjustments often fall short due to rising prices.

So, what's your plan? 

Are your investments ready to tackle this challenge? 

We've got options on the table, and one of them is the income annuity, which provides a guaranteed monthly payment that can keep up with inflation ... 

... ensuring you have more money in your pocket as time passes. 

So, it's time to examine where you stand closely.

1. Lifetime Coverage: No matter when you go your family will be taken care of and you never have to requalify for Coverage, you can start this on kids as early as 15 days old.

2. Cash Value Growth: This component grows over time. A portion of your premium payments goes into this cash value, which can be invested and grow tax deferred.

You can borrow against or withdraw from this cash value for various financial needs, such as paying for education or supplementing retirement income, giving you something that you hear me say all the time ...

... adding another Stream of Guaranteed Income For Life ... TAX FREE!

3. Tax Benefits: Money grows tax-deferred and pays out to you tax free. Additionally, the death benefit is paid out to beneficiaries tax-free as well! Great way to pass on wealth.

Let's get together, crunch some numbers, and ensure your plan has you covered, whether inflation is cruising at 3% or up to 10%. 

Your peace of mind matters ... 

... we're here to ensure you have it! 

Let's look at it from a different angle, something you can easily relate to. Think back to when you bought your very first home. Keep that number fresh in your mind. 

Recently, I was presenting to a group of about 40 folks, and the average age in the room was around 60 to 62. 

When I posed the question about the cost of their first homes, the responses varied. 

Some had bought their first homes for as low as $16,600, while most mentioned figures were in the $40k, $50k, and even $60k range. 

Hold that number in your thoughts—the price of your first home. 

Next, let me hit you with this: How much did you shell out for the last car you purchased? 

It's a bit of a head-scratcher, and I don't get many eager replies because, let's face it, it's not a topic we like to flaunt. 

But here's the kicker—what you spent on that shiny new vehicle probably came close to, if not exceeded, the price of your first home! 

I know we might be talking about a span of 40 or 50 years when I ask this question, but here's the deal: 

These comparisons become essential if you plan for your retirement to last 20 or 30 years (and it very well could). 

Think about it. 

Recall the days when gas prices barely made a dent in your wallet when you first started driving at 16. 

Compare that to what you're shelling out at the pump these days. 

Clearly, the cost of living has skyrocketed, and inflation is like an unstoppable giant that we must prepare for.

If you're banking on these sources to boost your living standards, that's fantastic. They can certainly be part of your retirement income.

But here's the kicker:

Even if you're lucky enough to have these sources, they might not be growing fast enough to keep up with the rising costs of life.

So, what's the bottom line? 

Well, it's on you to fill the gap. 

Now, let's consider investments and other opportunities: 

One of the strategies I often recommend is an income annuity. 

This financial tool guarantees you a monthly income, which can be a lifeline for covering your ongoing expenses. 

But here's the magic—if this annuity can keep pace with inflation, your monthly income can grow over time. 

That's a game-changer. 

We can delve deeper into this option during your FREE Retirement Of Your Dreams Call to tailor it to your situation.

First, we delved into the world of death and living benefits and why it's essential to ensure your life insurance covers both aspects.

This comprehensive coverage provides financial security for various situations.

Next, we explored the reasons behind needing life insurance.

These reasons can vary widely, from leaving a legacy for your loved ones to finding cost-effective options and enjoying the tax-free benefits that life insurance provides.

We also touched on how life insurance can be a crucial component of a long-term care plan.

We then took a closer look at term insurance as a viable option, especially if you're considering coverage beyond what your workplace or group insurance provides.

Term insurance offers affordability and flexibility.

However, it's essential to make sure your term policy is convertible to a permanent policy, ensuring lifelong coverage and peace of mind.

Regarding workplace or group insurance, we emphasized the importance of taking advantage of these offerings to secure cost-effective coverage.

Still, we also stressed the need to have an additional life insurance policy outside of your job to provide continuity in case you change employment or retire ...

... making obtaining coverage later in life more expensive or impossible.

Lastly, we highlighted the importance of considering life insurance for your children and the various approaches available to address their unique needs.

Life insurance isn't just about planning for the "what ifs."

It's about proactively safeguarding your family's financial future.

In the end, the key takeaway is to have a comprehensive life insurance plan in place ...

... tailored to your family's unique circumstances ...

... and designed to provide security ...

... and peace of mind ...

... regardless of what life may bring!

Check your social security benefits, and if you have a pension, weigh its prospects.

Pensions are becoming rarer, especially among the younger generation. 

During a recent meeting, I found that only about 30% of attendees had pensions, and shockingly, just one person in a group of 40 said their kids had a pension. 

This shifts our responsibility to those nearing retirement and those already in it. We need to figure out how to secure the income we'll need in the future. 

If you're grappling with this and discussing it with your children, you're dealing with a whole new layer of complexity that perhaps you never had to worry about.

Do you have income sources that are likely to increase over time? 

Now, let's roll up our sleeves and get to work. We should sit down and conduct a thorough analysis of your financial situation. 

I'm here to help you put together this crucial puzzle. 

I can provide you with projections and scenarios, tailoring them to your needs. 

Whether you want to plan for a modest 3% inflation rate or take a more cautious approach with a 10% projection to cover worst-case scenarios ... 

... I'm here to guide you through it all!

1. How To Protect Your Retirement Purchasing Power from Inflation 

2. How To Prepare For Inflation On A Fixed Income 

3. How To Balance Fixed Income and Expenses ... Even During Inflation 

So now you understand the critical importance of purchasing power in determining what your money will be worth during retirement ... 

... incorporating inflation into your fixed-income plan to bridge the gap between your income and expenses, especially as expenses are bound to rise ...

This video wraps up our Money Protection Series but stay tuned and join us soon for the next series about Money Security!

Please scroll down and let me know in the comment section below, “What was your BIGGEST takeaway from this week’s video?!”

Thank you for considering Retirement of Your Dreams as your partner on your financial journey!

Again, I'm Jason Bergquist ...

We’re committed to empowering you to achieve the retirement of your dreams.