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As inflation drives up spending in retirement, many will be
forced to use their principal for the higher income needed to
keep up with the rising cost of living. This reduction in principal
will result in lower income going forward, requiring the use of
more principal, and the downward cycle continues. You must
factor inflation into your retirement income calculations. Many
investors set a goal of maintaining their employment income
level, but your income will have to rise during the years you
spend in retirement.
Chapter 5: Things That Can Wreck Your Retirement
