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Americans are not big savers. Prior to the last two Covid years, 7.78% of after-tax disposable income was the average savings rate for the 10-year period from 2010-2019.

Inflation is accelerating in America. Recent data shows that the producer price index (a wholesale prices measure) in November, 2021 increased by 9.6% over the previous 12 months, the largest gain on record.

The previous article, “Inflation’s History In U.S. Is Not A Very Pretty Sight”, published 11/03/2021 in the Ahwatukee Foothills News, quoted recent news reports that inflation is a serious concern to most Americans.

Here are some headlines and key facts from recent articles:

Most of the financial advice world focuses on accumulating assets and rates of return. Very little time is spent on the effect of stock market crashes on one’s retirement assets; OR how to maximize your income from whatever retirement assets you have saved.

A recent 2021 Logica Research survey, sponsored by Schwab Retirement Services, found that 401(k) participants across America now believe they must save $1.9 million for retirement, up from $1.7 million in the 2019 survey.

There are only so many variables to any retirement plan: how much you save; your investment return on investment (ROI); how much you lose in taxes; and the income generated by your savings when you retire. There is a final factor, losses in future stock market crashes.

Just like a MD often gives a patient an annual or semi-annual physical exam, it’s time for your 2021 mid-year financial check-up. Let’s look at your job situation; real estate; investments; and tax plan.