Can Sagewell Financial help with rising inflation and costs of living?

by: Jocelyn | in 403(b), Retirement

James* from Monterey, California always knew retirement would mean living on a fixed income, so after years of saving, he was able to put away $300,000 into his 403(b). James has spent his first couple of years living comfortably, yet modestly, enjoying playing with his grandchildren, fishing and gardening.

Recently, like so many Americans, he’s beginning to feel the cost of rising gas prices and food prices. He’s also been spending a lot of time reading about inflation and how quickly it’s been rising with no end in sight. There may even be a recession, peaking during the years that he was hoping to live off of that fixed income.

A 403(b) which wouldn’t cover rapidly rising inflation

Worried about his 403(b) and how quickly it would run out, he began to investigate how much he would need to live on each month. Imagine James’ surprise when he saw that even without inflation costs going up as they were projected to, he would still run out of money before 70 years of age. He didn’t want to be a burden to his family, but didn’t see a way out – and rising costs of living weren’t helping his stress.

That’s where Sagewell came in

With Sagewell’s much lower monthly fee and exclusive savings program, James realized he would be in a much better situation than sticking with his 403(b). With a much smaller management fee of only .5% with a Sagewell IRA, vs. the 3% James was paying now on his 403(b), he would be able to make his money last much longer, and even live comfortably – even if inflation kept increasing!

A quick call with James’ free Sagewell Retirement Advocate mapped out two scenarios, one with Sagewell and one without, helping James to see what it would look like if he had his normal monthly withdrawals, but now he had much more left to live on, comfortably well beyond 90 years old. Even in Monterey, California, where the costs of living were already high!

The results were incredible

Leveraging Sagewell for monthly savings of $100 from cashback, renegotiated monthly bills and more, plus drastically reduced fees, made a difference that really compounded over time.

With all the figures in, and assuming 6% market returns and even factoring in rising costs of living due to inflation, with Sagewell James would still have $211,000 in his 403(b) – but sticking with his current plan they faced over $350k debt. James couldn’t believe the difference. Even with inflation out of control and facing another global economic recession, he was secure that he wouldn’t be a burden on anyone, and could live out his golden years comfortably with his grandkids, fishing the day away.

Helping our clients like James make the most of their golden years is why we built Sagewell – reach out today for a free consultation with one of our Retirement Advocates. We are passionate about helping folks’ like James live out their golden years comfortably, the way they’ve dreamed of, and deserve.

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*James’ story is an amalgamation of stories from Sagewell members. We have thousands of members just like you, who are retired and looking to ensure financial security while retired.

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