5. Personal Inflation and the Retirement Cost of Living
“...Inflation is much lower than it has been in the past due to the financial crises and the Great Recession, so I don’t have to worry about this too much....”
—Myth #5
Growing up in Latin America during the 1980s, I quickly learned how to adapt to the impact of inflation in daily life. With annual inflation rates reaching over triple digits, even young children knew to never expect the same price twice. Cash wasn’t allowed to sit idle and interest rates on bank deposits were designed to outpace inflation. We knew that salaries were linked to the U.S. dollar and pension income was stated in unidades reales, which is effectively a pseudo-currency consisting of a basket of consumable goods. ...
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