Alex Isidro

Why Your Retirement Number Is Shrinking While You Save

In the 1950s, the average American could buy a new car for about $1,500. Today, that same amount wouldn't even cover a down payment.

The number didn't change. The value did.

And that's exactly what's happening to your retirement goals right now—whether you realize it or not.

I've been working toward a specific number for years: $5 million in retirement savings. The math seemed solid. At a 4% withdrawal rate, that's $200K a year for my family. Comfortable. Secure. A number I could plan around with confidence.

But then something hit me that completely shifted how I think about wealth—that $200K won't have the same purchasing power 20 or 30 years from now that it does today.

Think about it like this: remember when a gallon of gas was under $2? When you could buy a house for $150K? When college tuition didn't require selling a kidney?
Inflation doesn't just eat away at your savings. It eats away at your goals.

The finish line you're running toward? It's moving backward while you run.

Here's what I mean:

if you're planning to retire in 25-30 years and you're aiming for that magical $1 million or $2 million or whatever your number is, you need to think about what that money will actually do for you when you get there.

With average inflation around 3% per year, your retirement number loses about half its purchasing power every 24 years.

That $200K annual income I was planning for? It might feel more like $100K in today's dollars by the time I actually need it.

I thought I was playing offense—maxing out my retirement accounts, investing consistently, doing all the "right things."

But I wasn't accounting for the invisible tax that never stops: inflation.
And honestly? It's a heavy realization. You work hard, you save diligently, you make sacrifices... and the goalpost keeps moving.

But here's the thing: this isn't about doom and gloom. It's about recalibrating your strategy so you're not running on a treadmill for the next 30 years.

Now, I know what some people might say:

"But Alex, inflation is built into the stock market returns. If you're invested in the S&P 500, you're already accounting for it."

And you're partially right. Historical stock market returns do outpace inflation over the long term.

But there's a critical piece most people miss: your retirement number is based on today's purchasing power, not future dollars.

So yes, your investments might grow. But if you're still thinking "$1 million is enough" without adjusting for what $1 million will actually buy you in 2050, you're setting yourself up for a surprise.

The question isn't just "How much do I need to save?"
It's "How much income will I need to live the life I want—in future dollars?"

So what's the solution? How do you actually prepare for a future where your goals keep inflating?

Here's what I've realized: it's not just about saving more. It's about earning more so you can invest more and reach your goals faster.

Think of it like this: if you're trying to fill a bathtub, but someone's slowly opening the drain, you have two options. You can try to plug the drain (impossible with inflation), or you can turn up the faucet.

That's where investing in yourself comes in.

Your earning power is your greatest wealth-building tool. The more you can earn today, the more you can invest, and the faster you can outpace inflation.

Here's how I'm approaching this differently now:

Invest in your skills like you invest in your accounts. Buy the course that teaches you the technical skill that could 10x your income. Join the mentorship program.

Learn the negotiation tactics that get you the raise. Every dollar you invest in yourself has the potential to generate returns that no index fund can match.

Think in terms of purchasing power, not just account balances. Don't just ask "How much do I need to retire?"

Ask "How much income will I need to maintain my lifestyle in future dollars?" Then work backward. The number is probably bigger than you think—and that's okay. At least you know what you're aiming for.

Own what you use. If you're buying an iPhone every few years, why not own Apple stock? If you're watching YouTube daily, why not own Alphabet?

If you're shopping on Amazon, own Amazon. You're already spending money there—let that spending work for you twice. Once as a customer, once as an investor.

Don't put all your eggs in one basket. Yes, max out your retirement accounts. But also focus on building multiple income streams. Your paycheck might stay flat. Your portfolio won't if you're strategic about it.

Side projects, consulting, businesses—these aren't just "side hustles." They're income diversification and risk mitigation for a future you can't fully predict.

Here's what I wish someone had told me earlier: income is freedom—today, tomorrow, and forever.

It's not just about hitting a number in your retirement account. It's about building the skills, the income streams, and the investments that give you choices no matter what inflation does.

I can't go back and start this strategy 10 years ago. But I can start now. And so can you.

At the end of the day, the fastest way to beat inflation isn't just to save harder. It's to earn more, invest smarter, and build a future where your money works as hard as you do.

So let me ask you:

What would change about your financial plan if you knew your retirement number needs to be 2x what you're currently aiming for?

What skill could you invest in this year that would increase your earning power by 20%, 30%, or even 50%?

If you owned stock in every company you regularly spend money with, how would that change your wealth-building trajectory?

These aren't rhetorical questions. They're the ones I'm working through myself.
Because the truth is, we can't control inflation. But we can control how we respond to it.

Start where you are. Invest in yourself first, then invest everything else.
Keep learning. Keep growing. Keep moving forward.

Your future self—and your future purchasing power—will thank you.

To your success,

Alex

P.S. If this shifted how you think about retirement planning, I'd love to hear from you. What's one action you're going to take this week to increase your earning power? Reply and let me know—I read every message.

1 week ago (edited) | [YT] | 3

Alex Isidro

Many engineers making great money fall into the trap of thinking that a six-figure salary equals financial freedom.

You know how I know? Because I was there. I used to think"

"Oh I make good money, I don't need to budget, or look at my finances, or check my bank statement. I'm good!."

WRONG.

Here's the truth: it’s not your income that dictates your financial security;


it’s how you manage it.

Before you know it, lifestyle inflation creeps in, and suddenly you're living paycheck to paycheck, and are even getting into debt even on a high salary.

The real key is creating a sustainable wealth strategy that includes eliminating debt, saving for emergencies, investing for the future, and most importantly, living below your means.

You deserve to create the freedom you’ve worked so hard for.

Keep going.

Alex

BTW, if you're ready to actually start building that emergency fund instead of just thinking about it, start with a high-yield savings account. It's the easiest first step, and you'll actually earn interest while you save.

I use SoFi. they're currently offering one of the highest rates out there with a great bonus. Check it out here:

www.alexisidro.com/BestHighYieldSavings

2 weeks ago | [YT] | 3

Alex Isidro

Here's what I wish someone would have told me earlier: saving is playing defense. Investing is playing offense.

One of the key lessons I learned was that wealthy people play offense.

They invest their money wisely:

And not necessarily in stocks...they invest in assets like businesses, real estate, and most importantly...in themselves.

This could be college, buying courses, certifications, further education, leveraging other people's labor and detaching money-generation from their time.

They use their money to buy options, not just safety.

So if you're an engineer earning a solid income but still feeling stuck…

There are two things happening:

1. You haven't taken control of your finances yet (and that's OK. At least you are now aware).

2. You are playing too much defense. Not enough offense.

Here’s how to shift:

• Track your expenses; spend less than what you make.


• Pay off all your debt (student loans, credit cards, etc.)

• Save just enough to feel stable (six month emergency fund in a high yield savings account).

Saving protects your present. Investing shapes your future.

What changed everything for me was realizing that wealth isn’t just about math. It’s about momentum.

And momentum comes from movement, not caution.

You don’t need to be perfect. You just need to start playing offense.

Keep going,

Alex

2 weeks ago | [YT] | 4

Alex Isidro

The most freeing wealth advice I ever got?

"Building wealth is supposed to be boring."

It’s like training for a marathon. The goal isn’t to sprint, it’s to find a pace you can live with.

You don’t check your watch every five seconds.

You just need shoes, a trail, and the discipline to show up.

After a lot of research and practice, I’ve learned investing works the same way.

I heard Warren Buffett say once:

“Just buy low cost index funds. Be consistent. Think long term.”

So now I do exactly that. In this stage of my life, I focus on:

• Just buying index funds
• With low expense ratio (<0.3%)
• Automating the contributions
• Long-term focus (thinking decades, not months)

I check my account once a month and move on with my day.

I know the market is crazy right now, but just remember:

You haven't lost anything if you haven't sold.

Keep moving forward,

Alex

BTW, if this resonated and you want to start investing, consider starting with SoFi. It's easy to start and you can do it with $1 (affiliate):

www.alexisidro.com/InvestingWithSoFi

2 weeks ago (edited) | [YT] | 8

Alex Isidro

Hard truth: You can be responsible with your money...and still fall behind. Back in 2012 in my first engineering job, I set up my government retirement plan like a good employee should.

I checked the box and did the right thing. It felt good to "start saving for retirement."

But I made one quiet, costly mistake:

For a little bit of background, the Government uses TSP (which is like a 401K), and it offers different "Funds" where your money can go once you start investing.

One of those funds is the G Fund...which is a super safe bond fund.

Since I didn't know much about finances, I thought I could pick any Fund and I would be OK.

So I put 100% of my contributions into this G Fund,

and this was a great choice...if I were 55.

But for someone in their early 20s, not a good one, as the fund was designed to preserve wealth, not grow it.

I'd locked myself into safety mode, when I should’ve been playing offense.

I thought I was “doing something,” but I wasn’t giving my money the chance to grow.

And the crazy thing is I didn’t even realize this mistake until only a few months ago in 2025.

Woops...

But here's the thing: no one ever teaches you this stuff.

You’re taught to save, but not to invest.

You’re told to play it safe, but never shown how to build wealth.

So if you feel behind, confused, or ashamed about not knowing where your money’s going…

That's OK. You’re not alone. You can take action now and build a better future.

Here’s what helped me shift:

• Stop thinking “saving” is enough. Saving is step one. Growing your money is step two. If your money isn’t working while you sleep, you’re doing all the heavy lifting alone.

• Ask what your money is actually invested in. Log into your retirement plan. Read about the funds. Use AI to make it simpler. You don’t need to be an expert, you just need to care.

• Use target-date funds to start (your simplest bet). Think of Target Date Funds like automatic pilots for your future. They adjust risk based on your age and give you broad exposure to the market, without needing daily decisions.

Get a second opinion if you're unsure. If you're not confident in your investment choices, consider hiring professional guidance. Sometimes having expert eyes on your portfolio is worth avoiding a $100K mistake.

See Best Financial Advisors here (free consultations):
www.alexisidro.com/FinancialAdvisors

As a millennial myself, I'm now invested in TARGET DATE 2055 (which estimates your retirement to be in 2055).

If I had learned these things earlier, I might be in a very different position today. But oh well, better late than never :)

At the end of the day, wealth isn’t built from perfect decisions, it’s built from aligned ones made consistently over time.

You don’t need a flawless plan. You just need a focused one, so start where you are, and pay attention to where your money is going.

Hope this helps you save and earn more for your retirement :)

What kind of painful mistakes have you made with your money? Let me know

Alex

#Engineers #Career #PersonalFinance

2 weeks ago (edited) | [YT] | 4

Alex Isidro

Hello, everyone! I'm launching something I've been working on for some time. A podcast called "Engineers Building Wealth." Every week, I'll interview engineers who've done something exceptional:

✅ Paid off $100K+ in debt
✅ Negotiated $30K+ raises
✅ Hit $500K-$1M+ net worth
✅ Started side businesses making $10K+/month
✅ Made career pivots that significantly increased their income

And I'll also bring on experts in retirement investing, taxes, and building online businesses to name a few.

I'm super excited about this direction.

The show launches in February 2026.

If you have a story worth sharing (or know someone who does), feel free to reach out! My email is in my bio

Let's build this together.

-Alex

3 weeks ago (edited) | [YT] | 4

Alex Isidro

A couple of months ago, I had an eye opening experience that gave me insights into a new lesson on personal finance and financial security:

It was near the holiday season and we experienced two fender bender accidents (everyone was OK), and an unexpected medical bill.

All totaling an extra $2300 that I did not see coming.

So I did what most people would do...and used my emergency fund to take care of it.

To be honest, this bothered me a lot.

As I thought about how to address in the future, I realized something:

"Ah, that's why I need sinking funds." This will help you address:

• Draining your emergency fund every December because you "forgot" about Christmas shopping and family gifts again

• Hitting yourself with a $1,200 car repair that shouldn't feel like a crisis, but does because everything is mixed together

• Feeling guilty every time you spend on anything because you can't tell if it's "allowed" or if you're stealing from your future

• Watching your emergency fund shrink month after month because life keeps happening and you keep calling everything an "emergency"

• Living in constant financial anxiety despite making more money than your parents ever dreamed of

You see, I thought sinking fund savings was a "nice to have" and that I didn't need them.

The truth is, if you want to mitigate the impact of these "unexpected" expenses, sleep better, and stress less when they arrive, you absolutely need them.

Because lumping everything together feels simpler...until you realize clarity is what actually builds wealth, not willpower.

Here's how to tackle it:

• Open a high-yield savings account

• Set up separate vaults for specific and unexpected expenses: emergency fund, car maintenance, holidays, taxes/annual bills

• Fund your emergency fund first: 6 months of expenses that you never touch unless it's a true emergency

• Automate transfers on payday

At the end of the day, financial peace isn't built by earning more. It's built by knowing exactly what each dollar is for.

Start with one high-yield account and two vaults. You can always add more later.

Keep moving forward.

-Alex

P.S. I use SoFi for this exact setup. Multiple vaults, high-yield interest, zero confusion about what money is for. Check them out here www.alexisidro.com/SoFi

3 weeks ago | [YT] | 6

Alex Isidro

Uncomfortable truth for engineers carrying debt:

Every month you stay in debt is a month you're not building the life you actually want.

It's a gut-punching reality...

I've been there, and you know what? Debt isn't just about the numbers on a spreadsheet. It's about everything you're putting on hold while those balances sit there.

Here's what I mean:

• Postponing your emergency fund while one unexpected car repair could send you spiraling back to credit cards

• Delaying retirement contributions during your highest growth years—the compound interest you'll never get back

• Putting off starting a family because you can't imagine adding those costs on top of loan payments

• Living with constant financial stress that follows you home from work every single day

These are real life costs, and they add up to years of your life on pause.

Because minimum payments feel manageable...until you realize you've been treading water for five years while your dreams collect dust.

Here's how to break free faster:

• List every debt smallest to largest: Ignore interest rates, focus on quick wins that build momentum

• Cut one major expense temporarily: That $200/month you're barely noticing could shave years off your timeline

• Increase your income through career moves, promotions, salary negotiation, side business ventures

• Celebrate every payoff: Paid off a card? Acknowledge it. Momentum is everything.

Remember that financial freedom isn't built by accepting debt as normal.

It's built by treating it like the emergency it is, then redirecting that cash flow toward the life you've been delaying.

You don't need to be perfect. You just need to start now instead of next year.

I believe in your and I want you to believe in yourself.

Keep moving forward,

-Alex

P.S. Want my exact debt payoff system? The one my wife and I used to knock out $215K in under 3 years? Grab it free: www.alexisidro.com/debtfree

3 weeks ago (edited) | [YT] | 5

Alex Isidro

Hard pill to swallow for many engineers: You can have a great salary, solid savings, and still feel stuck financially. It's a sad reality...

Because managing money isn’t just about adding up the numbers, it’s about how you handle risk. Here's what I'm talking about:

• Losing your job with no backup plan
• Letting your savings quietly shrink from inflation
• Leaving your loved ones vulnerable without life insurance
• Never investing and watching your future get more expensive
• An unexpected disability that derails everything you built

These are real life risks, and they deserve a plan.

Because playing it safe feels smart…until you realize you’ve been managing everything except your own future.

Here are some actionable steps you can take to manage these risks:

• Build protection: emergency fund, insurance, a simple will
• Always be building opportunities: Put yourself out there, talk to recruiters. Stay up to date in the job market
• invest monthly, even if small
• Make your money work harder: don’t let it sit in low-interest accounts while inflation eats away at it (start with high yield savings accounts)

Wealth isn’t built by avoiding risk. It’s built by understanding it, and moving with clarity.

You don’t need to be perfect. You just need to start thinking "how can I minimize risk while maximizing upside?" in everything.

Keep moving forward,

-Alex

3 weeks ago (edited) | [YT] | 8

Alex Isidro

PSA: I was watching a documentary on the Financial Independence Retire Early (FIRE) movement and something jumped out at me:

Everyone talks about maxing out 401Ks and Roth IRAs…but if you’re trying to retire in your 40s, there’s a hidden risk nobody mentions:

Access to your money.

You can have a million dollars and still not be able to use most of it for 15 years without complex workarounds, penalties, or forced tax strategies.

FIRE isn’t just about how much you have. It’s about WHEN you can use it.

1 month ago | [YT] | 6