Mark Moss explains why inflation erodes a $1 million nest egg: what cost $1 million 20 years ago costs $2 million today. He introduces gap analysis, a calculation that compares your current assets to your retirement goal to show how much you need to save and by when.
A million dollars is not going to be enough to retire. If you think about a million dollars 20 years ago is like $2 million today. So what that means is that a million dollars 20 years from now will get you about $400,000 to $500,000 of purchasing power. But if your goal is to retire for 20, 30 years or longer, how is that going to work? So then the question that you're probably asking yourself is how much do I need and by when? And then what will it take for me to get there? You see, once you know your destination and your starting point, Then it's just a math equation. It's what we call gap analysis. I built a tool, an app that I use that calculates all this for you. If you want that tool for free, just comment asset GPS. I'll send it over to you.
