Here’s some of what we discuss in this episode:
🔥 Why inflation headlines feel worse than reality
🤔 How “recency bias” can influence your financial decisions
⚠️ Why 401(k) loans and hardship withdrawals should be a last resort
🏦 Social Security COLAs: how cost-of-living adjustments help retirees
🎯 The importance of regularly rerunning your retirement plan
Today’s Hack
Inflation may no longer dominate headlines like it did in 2022, but it’s still a top concern for many Americans planning for retirement. A recent Schwab survey shows how inflation affects confidence and preparedness for the future. In this episode, Phil explains why the psychological impact of inflation often feels worse than the actual numbers and how perspective matters for long-term planning.
He breaks down the difference between short-term spikes and long-term averages, and highlights Social Security cost-of-living adjustments that have helped retirees. Phil also shares positive signs, like fewer hardship withdrawals and continued retirement contributions, even during economic uncertainty. The key takeaway? A solid financial plan doesn’t just account for rising prices. It gives you confidence in spite of them.
0:00 – Intro
1:08 – Schwab Survey Statistics Overview
3:10 – Long-term inflation averages
6:10 – Encouraging signs in savings behavior
8:10 – 401k loans and hardships withdrawals are down
9:57 – Steps to take now
12:11 – Confidence beats headlines
Schwab Survey Article
If you have any questions about what we discussed in this episode, reach out and we’ll be happy to set up a time to talk.
Get your copy of The Tax-Smart Retiree: https://www.thetaxsmartretireebook.com/welcome