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Who Moved My Cheese?
Written by Steve | Published: |
When I was growing up I was always curious to see what book my Dad had next to him in his room.
His office library was one thing but if it was on his nightstand I knew he was actually reading it.
There was one book I distinctly remember the title of and can still picture the cover.
It was a book called “Who Moved My Cheese?” I know it wasn’t like an all time favorite of his or anything but I thought the title was silly so it stuck in my head.
I thought to myself, what is he reading? An experiment about a bunch of mice.
In full disclosure I have not read this book, but I do know that it is a best seller on how to deal with change in work and your personal life. But my point is not a recommendation for the book at all.
I thought of this book title after I recently read that our government just changed the rules on how they calculate inflation.
The U.S. Bureau of Labor Statistics decided that the way to calculate the consumer price index which outlines the inflation rate should be changed.
I found it humorous that instead of actually trying to truly fix the problem they just wanted to re-define it.
They moved it from a 2 year calculation of food, energy, shelter, etc. prices down to a 1 year calculation in order to show our stats are better than they really are and leaving the Fed more room to justify softening sooner.
In other words the government just moved the cheese on all of us.
I want you to keep in mind that inflation is another form of taxation.
If you are a high income earner and depending on where you live you could already be paying over 50% in tax. Now add on an 8% inflation rate.
That is like working from January to almost July for the government and then the time from July to the end of the year is yours.
Tax and inflation are two of the deadly threats to a successful retirement.
If you don’t have a solution to get paid more and more every year through retirement, even when your account runs out of money, then you might need to dig in for a more scientific approach to your retirement cash flow.