Why “Someday” Retirement Goals May Not Cut It—And What to Do Instead

The Shock Factor: It’s All About Inflation

We often hear phrases like “A million dollars isn’t what it used to be,” and that’s 100% true. The cost of living keeps going up. Even at a conservative 4% inflation, the money you’re making today won’t stretch nearly as far 15, 20, or 30 years down the line.

• For example: If you’re 50 years old today earning $150,000, you might decide you can “get by” on $120,000 in retirement. Fast-forward 15 years at 4% inflation—and that $120,000 turns into $216,000! That is what you’ll need to live like you are living today on $120,000.

Where These “Astronomical” Numbers Come From

You must account for inflation and you can find an inflation calculator anywhere. I am using the Truth Concepts Calculator called Future Requirements (which you can check out at truthconcepts.com), we see how quickly numbers skyrocket with inflation. People say, “Where are you coming up with the fact that a 30 yr old will need $30 million to retire? Well, the calculator doesn’t lie:

• If you’re 30 years old making $80,000 a year, that $80k can inflate to $315k by the time you’re 65, same as it did above. Suddenly, the big pot of money you thought was so huge at age 30 isn’t big enough anymore. A million dollars is nothing today, it will be peanuts in the future. It only feels like a lot because we don’t see it all at once, but sit down and figure your income times the number of years you have left to live. That million will go through your hands.
• You might need $3.8 million in today’s dollars (if you’re 50) to maintain your lifestyle to 90 yrs old, which could easily translate to $7+ million in 15 years.

Point is: We’re not just picking random numbers. When you factor in a real-world inflation rate, your future “money need” can balloon faster than you’d ever expect.

Why We Need Cash Flow (Not Just Savings)

Seeing these insane figures might make you think, “Guess I’d better stash more in my 401(k) or I better chase a higher rate of return.” Except traditional retirement accounts alone aren’t always the best solution—especially if you want to avoid being 75 and worried about outliving your nest egg.

Cash Flow Is King

It is not all about how much we can save and what rate of return we can get. We will NEED cash flow to pay those bills. The question becomes how can I create cash flow that will continue through retirement?

• First we need a place to keep our money liquid, that is where Infinite Banking comes in: This concept allows you to leverage the cash value of your whole life insurance policies for liquidity. Instead of locking your money up in traditional investments, you can use policy loans to invest in income-producing assets like farmland, rental property, or starting a business.
• Start a Business: Use your specialized skills or buy a business and later this business can be sold. Heck, many of our boomers have decades of knowledge and experience yet they feel they have nothing to offer. Share that knowledge and Monetize it—create an online course, charge consulting fees, or start a YouTube channel. Yes, you can do that when you are a boomer, not just a young person.
• Real Estate or Owner Financing: Rental properties bring in monthly income. Owner financing land or equipment can provide steady payments that act like a pension.

The biggest question to ask yourself: Are you more afraid of running out of money or of risking a new venture that could fail? Because sometimes the fear of failing keeps us from ever taking the steps to ensure we won’t spend retirement working at Walmart just to cover the bills. This monthly or yearly cash flow from these assets is critical when everything else gets more expensive.

Living Longer Than You Think

People say, “Oh, we’re not living as long as we used to.” But guess what?

• Retirement age was originally set at 65 because most people didn’t live past 65.
• Modern life insurance policies are going to age 121 for a reason (yes, 121!).

Even if 100 seems far-fetched for you, it’s not so impossible that you should completely ignore it in your planning. Underestimate your lifespan, and you can wind up in your late 80s or 90s with little to no income stream.

How the Math Plays Out

Let’s say you’re 40, making $150,000 in a household. Retirement at 65 means your “lifestyle” paycheck would need to keep pace with inflation for 25 years. If it takes $120,000/year to live now, you might need around $13 million in future dollars to cover that same standard of living until age 85—or more. That’s not some wild guess; that’s just how the numbers shake out when you apply a modest 4% inflation rate.

Saving 10% Might Not Be Enough

Tucking away 3–10% of your annual income into a 401(k) or IRA and hoping for a safe rate of return simply isn’t likely to cut it. These accounts typically assume you only draw down 2–4% each year. Factor in the possibility of living past 85 and you can see the shortfall.

So, What’s the Solution?

• Get Educated on Infinite Banking
  • A properly structured whole life insurance policy gives you liquidity and control of your money.
  • You can use policy loans to finance income-producing opportunities, creating cash flow over and over.
• Create or Invest in Cash-Flowing Assets
  • Start a business or invest in property that brings in monthly or yearly income.
  • Owner-finance land or equipment sales to generate a steady stream of interest income.
• Monetize Your Skills
  • If you’re 50+ and have decades of experience, somebody needs that knowledge.
  • Coach, consult, or teach others. It’s a great way to bolster your retirement income.
• Plan for a Longer Life
  • Aim beyond 85. If you happen to pass sooner, that’s one thing—but it’s a lot worse to plan for 85 and run out of funds at 90.

Next Steps

If you’re reading this and thinking, “Wow, I’m way behind,” don’t panic.

Grab my book at FarmingWithoutTheBank.com or Withoutthebank.com if you want to dig into Infinite Banking strategies that can help with all of this. Then Schedule a meeting with me or John to chat about what you have going on and how we can help.

The bottom line is that purely “saving” might not cut it in an inflation-heavy world where we’re all living longer than ever. So, consider flipping your focus to generating cash flow—that’s what’s going to carry you through your retirement years.

Until next time,
Mary Jo