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PAGE SIX
How Much Can You Retire On?
Formula Is Based On Inflation
The prospect of long-term in-'
flation is playing havoc with in
comes of those couples who are
planning their retirement, say
the editors of Changing Times,
the Kiplinger Magazine. Anyone
saving money for the day he |
reaches 65, will have to up that
figure considerably for every year [
before he attains ‘*at age.
Today, the minimum figure of
$2,000 to $2,500 a year to live ir.
“modest but adequate” circum-;
stances is needed by a retired
But they can easily uscj
more. They shouldn’t expect to |
get by on much less without real
sacrifice or without “invisible in-,
come” to draw upon—such things
as a home owned outright or fur
nished free, home grown foods,
etc.
This minimum is based on the
requirements of a retired couple
about 65, living in rented quarters
of two or three rooms, city dwell-'
ers with no car. It represents a
level of livmg which provides the
goods r.nd s«vices necessary to
maintain health and allow normal j
participation in community l'fc,
in accordance with current Amer
ican standards. Social and con
ventional needs are taken into ac
count. Naturally the level of liv- '
ing is not luxurious, but it pro
vides for more than the basic cs-j
sentials.
Most couples living on today’s
average income of $4,000 or $5,- i
000 a year, just before retirement,
would have little difficulty in ad
justing to that minimum.
Couples now living on $20,000
would have the devil's own time
of it. according to the editors.
How To Figure Ycur N-*e J s
An approximate yard-tick for
any couple figuring on what they
will need to live on when they
retire, can he applied. One third
to one half of pre-retirement in
come is the most widelv used
measure. But the closer they are
to the dav of retirement, say the
editors, the harder and more pre
cise their figuring should be.
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In order to plan your retire
ment needs, visualize yourself in
the retirement years and estimate
your various expenses. Elimin
ate from today’s budget such
items as the cost of feeding, cloth
ing and , raising children, trans
portation to and from work, sav
ings programs, etc.
Unfortunately, warn the edi
tors, figuring what you’ll need by
today’s cost of living js not rea
listic. You’ve got to take into
account how inflation will eat in
to your income.
And there is no guarantee that
it won’t. In fact, expert opinion
agrees almost unanimously that
living costs will continue to rise
over the long haul. There may
be short-term interruptions, when
prices might decline. But the
long-term outlook is for continued
inflation.
How much should you adjust
this income you’ve decided upon
for the probability of higher
prices? There is no way to say
exactly and with certainty, the
editors continue. Nobody is that,
good a prophet. You can, how-!
ever, protect yourself with area-,
sonable assumption one that
could prove wrong, but that has ,
an odds-on chance of being right.
Taking into account the long
term inflation of the past, and the ,
best opinions on future prospects, j
Changing Times editors suggest j
that you up your income estimate!
by about 2 per cent each year,
from now until the time you re- \
tire.
Suppose, for instance, that you j
have decided that, were you 65 j
today, you could retire happily on
$3,000 a year. However, you’re
actually 45 and have 25 years to
go. Add 40 per cent (20 times 2
per cent) and say that vou will
need an income of $4,200. Or. if
you retire in 10 years, add 20 per
cent to what vou figure in terms
of todav's living costs. Add an- ,
other 30 per rent if vou plan to
retire in 15 years, and 50 per cent
in 25 years. )
THE CHOWAN HEBAU?, EPENTQN. NQFTji CAROLINA. THURSDAY APRI*. 3, 195*.
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MULES GET THEM THROUGH— In its death throes, winter unleashed a savage blizzard
in the East that hit Pennsylvania particularly hard, knocking out communications and block
ing major highways with impassable drifts. Impassable, that is, for modern vehicles. Using
a mule-drawn sleigh, these Amishmen serenely pass a stalled truck and car on their way to
the market in Lancaster, Pa., with milk to be sold. The 46-inch fall didn’t hamper them at aIL
j 20 YEARS AGO
Continued from Page 1, Section 1
Rctarians, Lions. Masons and
, Red Men announced that they
had teams ready to participate in
the Edenton softball league.
A group of slate highway offi
cials presented a program at the
Lions Club, emphasizing Govern
or Clyde Hoey's program for safe
j driving on the highways.
I Arrangements were completed
( for a meeting of home demonslra
\ ticn club members of the 16th
: District to meet in Edenton April
j 14th.
i N. H. Yelfon, state director of
public assistance, was speaker at
the Edenton Rotary Club's meet
ing, when he explained the con
fusion about the old age assist
ance phase of the social security
program.
Dr. M. P. Whichard was elected
president of his class at the Uni
versity of North Carolina where
he was studying public health
work.
The Chowan Herald announced
a subscription contest with over
SBOO to be given in prizes.
Red Men were in the midst of J
an attendance contest with Ernest
Lee and Gus Bunch captains of I
] the two sides.
1 The* Northeastern District of
! Federated Music Clubs held its;
annual music contest in Edenton. |
Young Democrats in Chowan!
County started a camna : gn to in
crease their membership.
The 4-H Club work among Ne
gro boys and girls got off to a
fine start, with 12 clubs organiz
ed and busily at work.
Both sides of ’ the debating
team at the Edenton colored h : gh
school won in the annual debate
by defeating Williamslon and 1
Windsor.
Superintendents of public wel-:
fare from 12 eastern counties met
in the Chowan County Court
House when work of a general
nature was discussed.
Two pilots, racing thoir planes
I to an aerial intersection, had a
tie —too bad and two dead!
LIBRARIES CLOSED MONDAY
Both the Shepard-Pruden and
Brown Carver Libraries will
closed Monday, April 7, in ob
servance of East’er Monday. This
is a state holiday.
lviwU The NEW flower Everybody Wants
ill MTfft**
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Immense blooms
We have many more new
' ” 4 improved flowers and vege-
KIT Pearce
SEEDSMAN
, Phone 3839 Edenton
ROCKY HOCK CLUB MEETS
“The newer fabrics available
appeal to a homemaker because
of their beauty, their durability,
and their ease of laundering and
care.” Miss Maidred Morris,
home agent, explained to the
Rocky Hock Home Demonstration
Club members at its meeting.
She urged everyone to carefully,
read labels, save them, and care j
for the garment as directed by
these instructions.
Mrs. Henry Bunch conducted
the business meeting. A report
from the County Council was
given. A special appeal from El
ton Forehand, County Red Cross-
Drive Chairman, was read, re-*
questing the club to help solicit
for the current drive.
Members were urged by Mrs.
Bunch to attend the “Womanless
Wedding” being sponsored by the
County Council April 9. Plans
were made to help conduct the
Cancer Drive in April in the com
munity. The “Homemaker” for
Rocoky Hock Club was selected.
Two -new members were wel
comed to the club—Mrs. Thurman
Ashley and Mrs. Bill Leary.
The meeting was well attend
ed at the home of the hostess,
Mrs. Lonnie Harrell, last Mon
day night.
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VJjNOL j x- v 1 *
■ Wrirrm 111
ARMY MIGHT HAVE DONE IT- -Army Secretary Wilber
BnJcker holds a model of the Jupiter-C missile at his . dfflee in
Washington. Brucker told Congress that the Army might hav-,
launched an earth satellite two years ago if the I entagon had
not blocked the project.,
• lift
GET EXTRA^H
MILEAGE 1
Wzfim Cut down on your new shoe bills by bringing H
your old shoes to us for expert repairs. We ll |§
put them in tip-top stiape for many extra miles |
iiS and months of faithful service. B
A ||||
mm RHOADES SHOE SHOP Jj
Hi BROAD STREET—EDENTON SM
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