Does anyone what the projection of inflation for taxes will be 20 years from now?

Question

i am in my early 20s but I want to plan ahead so I don't have to work when i'm real old

Answer 1

probably about same as now - they did not change much over last 20 years.

One things for certain that Social Security will be in major trouble, so the only way out for you is to get education and start putting money into a 401(k)

Answer 2

It's an unknown quantity at this point. Tax policy is neither predictable nor stochastic. We can assume an increase if government takes on additional liabilities (since it will need revenues to match). You, personally, may be able to prevent much of that increase through careful planning.

Answer 3

Do you mean "inflation and taxes"? And do you think that you will be "real old" in 20 years?

First, it depends on the tax structure. Do you have a fixed progressive tax structure? If so, and the government does nothing to change marginal rate thresholds, everyone will be paying more tax (ie a larger proportion of their incomes will go to the tax man). In most countries. the governments adjust margins but not often. I don't know of any where it happens automatically.

Inflation: look at index numbers now compared to 20 years ago and this will give you some idea. If you factor in fuel prices (not a great factor over the last 20 years but will be in the next 20) you will get a better idea.

Invest in things that appreciate at inflation rates or better. Bank on capital gains not interest. Figure out things that are going to increase in demand and invest in those.

Have fun.