Inflation is the biggest enemy of retirement savings and the retirement life in general. Just think about it, in 30 years, $100 would be equivalent to $41 in today’s dollars. So if someone retires in 30 years, and the retirement income is $50,000 a year, that’s equivalent to about $20,600 a year in today’s dollars. That’s no way close to a comfortable retirement lifestyle.

So then, what’s the secret to a comfortable retirement lifestyle? Start with a budget. Save as much as you can. Invest in the most aggressive growth fund.

Let’s say: you would like to receive $100,000 a year in 30 years (about $41,200 in today’s dollars) when you are 67 years old, and live till you are 97 years old. You’ll need to save about $5,700 a year if you invest it in that growth fund I mentioned above. If you choose bond fund which is more conservative with lower rate of return, you’ll need to save about $16,800 a year to reach the same goal of $100,000 a year.