It’s that wonderful time of year again, TAX TIME! Hopefully those of you who will be receiving a refund have a plan in mind for your money, if not, I recently heard some figures that will definitely make one stop and think. At last week’s bank meeting, one of our financial advisors told us about the ‘Rule of 219.’ This rule involves determining the cost of eating for two people during retirement. Let’s say two people eat three meals a day during retirement and each meal costs $5. You then take that times 365 days a year, then multiply that by 20 years of retirement. Here’s the math;
2 x 3 x 5 x 365 x 20 = 219,000
In this situation, it will cost two people $219,000 to eat during retirement. This doesn’t even factor in dessert! Throw in other costs, such as bills, transportation, travel, etc… and the number grows even greater. One may argue that it will not cost $5 per meal for them, but even at $3 a meal, two people’s cost of eating would be $131,400! Also, note that this is estimating for only 20 years of retirement. With life expectancy increasing, it’s easy to raise that number another 10-15 years.
So when sitting down to determine what to do with your tax refund, it may be helpful to visit with a professional. A financial advisor can help you reach your long term financial goals. They can assist you in making sure you get to spend your golden years eating steak instead of reverting back to the college days of ramen noodles.