Simple math can help plan the path to and through retirement. 

As seen in The Oakland Press

June 7th, 2026

Simple math can help plan the path to and through retirement.

by Ken Morris

The jump in prices at the pump has certainly contributed to the overall increase in the cost of living. Spending $100 to fill the tank is the new normal. Since the hostilities began in late February, many people that didn’t immediately adjust their spending habits created a problem. They continued their normal spending using their credit cards and are now coping with large credit card balances.

The danger of using plastic is that you can delay the pain. And for those that did not make modifications to their lifestyle, when the pain finally does hit, it will hit much harder.

Our Federal Reserve has a dual mandate of maintaining full employment and keeping inflation under control. The target goal for inflation is 2%. With a lingering war and the proliferation of AI, it’s going to be a difficult road ahead. Will the Fed meet its mandates? Only time will tell. But there’s a tool you can use yourself to achieve financial success by keeping your investments in line with inflationary pressure.

It’s called the rule of 72, and here’s how it works. Let’s say your investments earn 8% per year. Divide 72 by 8 and you get 9, thereby determining that your investments will double in nine years. (72/8=9). Simple math and it works. If you want to plan even longer term, there’s the rule of 114, which is simply the tripling of money. Again, for example, if you earned 8% per year, your money would triple in 14.25 years, (114/8=14.25).

These simple rules can not only help project savings, they can also be used to project the damaging impact of inflation. For example, at 4% annual inflation, prices would double in 18 years (72/4 = 18). It would triple in just over 28 years (114/4= 28.5). Inflation is one of the reasons investors need growth during retirement to maintain their purchasing power over an extended number of years.

So, simple math can help you attain your saving goals and show you how much more you’ll be spending in the future. Too often, I hear people say, “I did the math and I can afford to retire.” And almost as often there’s a miscalculation. They fail to account for the impact of rising prices during the retirement years.

Another factor to consider in retirement planning is taxes. Every level of government wants to take a bigger piece of your paycheck every year. Several states and municipalities even have wealth taxes on this November’s ballots. You can cast your vote two ways. On your ballot or with your feet. In other words, vote no or relocate.

Whatever you decide, I think you should still plan on paying more in taxes. It’s also vital to carefully monitor your spending and to commit to saving and investing regularly. While you’re in the workforce, both you and your money are working to get ahead of inflation. Once retired, it’s just your money working, so it helps to have some allocated for long-term growth.

Pretty amazing, isn’t it? Basic math can help you minimize the odds of falling into financial difficulty and put you on the path to financial independence. The rule of 72 and the rule of 114. Two simple rules. I’d like to explain to you exactly how and why they work. But I was a history major.