Today’s guest blogger is Sarah Tolson, a Certified Financial Planner with her office in Danville. Her bio and contact information are below.
Christina’s note: this is a really important issue, because we need to prepare for retirement and our elder years in ALL ways, and not just with our estate plan. Planning financially is critical, especially these days where we are living longer and longer, so we need more resources for a longer time.
Inflation is defined as the long-term, sustained rise in the general price level of goods and services. The most popular measure of inflation is the Consumer Price Index.
The CPI, calculated monthly by the Bureau of Labor Statistics, tracks prices for a basket of commonly used goods and services (such as food, clothing, housing, and medical care) to measure inflation at the consumer level. In 2009 the inflation rate was 2.72%, but over the past 30 years inflation has averaged 3.51% annually.1
The CPI attempts to measure the rate of inflation experienced by the average American, but this figure may not be entirely applicable to your situation. For example, depending on your lifestyle and where you live, your costs for housing, food, and medical care may vary significantly from the national averages.
Because the CPI may have only limited usefulness when trying to measure how inflation affects your personal finances, the accompanying worksheet can help estimate your personal inflation rate. This information may help you better understand how inflation could affect your financial future, especially retirement.
1) Thomson Reuters, 2010 (CPI for the periods 12/31/2008 to 12/31/2009 and 12/31/1979 to 12/31/2009)
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.
Sarah Tolson, Certified Financial Planner™ recipient, is passionate about building the next generation of her family’s legacy of personalized financial planning; and she is committed to helping professionals create wealth-building plans tailored to their age, goals, and life circumstances.
Sarah joined her family’s wealth-building business to help the children of her family’s clients begin to start building their own wealth, with someone who understood their values and who would not be judgmental or lecture them like a parent.
Sarah has a Bachelor of Science in Business from the Kelley School of Business at Indiana University. She joined her family’s firm in 2006 after several years in a successful retail merchandising career with Target Corporation and Abercrombie & Fitch.
As an active member of the Junior League of the Oakland-East Bay and the Pleasanton North Rotary Club, Sarah participates in philanthropic work regularly. Sarah is on the Board of Directors for the Financial Women’s Association of San Francisco and helps to organize events especially for members who live in the East Bay. She is also the Vice President for the Founder’s of Success chapter of Business Network International (BNI) and a member of e-Women Network.
In addition to financial consulting, Sarah is an entertaining and captivating public speaker; and she is currently writing a book about financial planning for women with young families. In her spare time, Sarah enjoys playing tennis, cooking, and traveling.
4115 Blackhawk Plaza Circle, Suite 100, Danville, CA 94506
phone: (925) 736-3024 / fax: (925) 736-3026