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The Inflation Reduction Act (IRA) was recently passed and signed by President Joe Biden on 8/16/2022. According to Wikipedia, these are the main parts. The first is allowing Medicare to negotiate prices with drugmakers and limit out-of-pocket expenses to seniors on Medicare to $2,000 per year.

Over the decades, millions of Americans have made major errors in their investment, tax, and retirement planning decisions by not understanding advanced math. I will cover two examples now, including common myths.

On 6/13/2022, a CNBC article by Samantha Subin and Fred Imbert was titled “S&P 500 tumbles nearly 4% to new low for the year, closes in bear market territory”. The S&P 500 Index was down 21% from its January, 2021 record.

I’ve studied the world of economics and investments for over 50 years. One needs to know the math that is relevant to making better investment and retirement planning decisions. Here’s what I mean.

My February 02, 2022 Ahwatukee Foothills News article was titled “Traditional IRAs can be a Tax Time Bomb!” The more your traditional IRA or 401k grows, the more the eventual tax, either through Required Minimum Distributions (RMDs) that start at age 72;

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.