Inflation

Went to my usual coffeeshop after jogging today and ordered my usual fried rice.

Cost : $3.50!! Increase by 50cents

and since i was very hungry, i decided to order peanut soup with red bean and sesame balls.

Signboard : $2

Cost : $2.10 !! 10cent for container, Previously when i ordered the container WAS free.

Times are bad, certainly a lot of small business are looking for ways to increase their revenue.

this brought me back to a lunch conversation i had with a financial planner (FP)friend.

FP : When do you wish to retire?

Me : 50

FP : How much do you want to spend per month after retirement

Me : 1000

FP : If you die at 85, you will need 1000 x 12 x 35 = xxxx amount

Me : correct

FP : however, you must take note of inflation. the $1000 monthly after 24years (i am 26 this year) will be 2000++ (close to 3000), thus instead of taking 1000 x 12 x35, (*counts) you will need 1 million plus. And this 1 million plus is exluding inflation during my last 35 years.

Note : Of cos our conversation are not that robotic, Details are extracted, the rest of the misc conversation are all ommited.

Pretty scary, but true.

Consider the cost of a stick of mentos in 1994 and now. If i never recall wrongly, in 1994 was only 50cents and now it should be $1.2 when i last checked.

thus i can conclude, in the next 50 years, almost all of us will be millionaires (=