Most of us know that inflation means prices are generally rising and most of us take it as a given that inflation will occur pretty much every year. But what many don’t know is how big of an impact inflation can have on one’s retirement plan.

I have written a number of articles about whether a certain amount of money would be enough to retire with. A million dollars. Two million dollars. I put a hypothetical couple through a hypothetical saving-and-spending scenario, and we see how it goes. I used the WealthTrace Financial Planner to calculate all of the scenarios in this article and you can do the same using our free trial.

When we talk about "asset allocation," we are, broadly speaking, referring to where you're investing your money. Over longer periods, the more willing you are to take some risks with your money in the stock market, the better your returns will be.

One definition of a worry-free retirement is not having to worry about where the money is coming from. As I have written before, "You are truly retired (or able to retire) when your passive income covers your expenses."

For the more adventurous, real estate income is another way. Investing in rental property can be a compelling option for those who have the time, the handyman abilities, and the willingness to find and work with tenants.