With increasing longevity, retirement is not a single period but a multi-stage journey. Financial plans must distinguish between the early, active "golden years" focused on travel and hobbies, and later years dominated by higher, often unpredictable medical expenses. This requires a more dynamic approach to saving and investing.

Holding cash is a losing strategy because governments consistently respond to economic crises by printing money. This devalues savings, effectively forcing individuals to invest in assets like stocks simply to protect their purchasing power against inflation.

Decades of currency debasement through money printing have made asset ownership essential for wealth preservation. Since a house is the most intuitive asset for the average person, owning one transformed from a component of the American Dream into a compulsory defense against inflation.

A seemingly large inheritance like $5 million is not "set for life" money for a young family. After inflation and taxes, the annual return is insufficient for a high-cost lifestyle. The advice is to live self-sustainingly, letting the capital grow into a sum that provides true, long-term financial freedom.

Strategic military planning, which looks decades into the future, is still based on a 2% inflation target. This is a critical flaw, as even slightly higher sustained inflation will drastically cut the real budget, severely limiting the military's ability to procure equipment and maintain readiness.

In an economic system with persistent currency debasement, holding cash in a savings account guarantees a loss of purchasing power. Prosperity is no longer achievable through simple saving; it requires actively "betting" on assets that can't be inflated, such as stocks, real estate, or crypto.

Due to the long-term effects of compound interest outpacing inflation, the opportunity cost of spending money when young is massive. A single dollar saved can grow to be worth $13 in purchasing power by retirement, turning a $500 splurge into a $6,500 long-term financial decision.

Despite official CPI averaging under 2% from 2010-2020, the actual cost of major assets like homes and stocks exploded. This disconnect shows that government inflation data fails to reflect the reality of eroding purchasing power, which is a key driver of public frustration.

Understanding money, inflation, and assets is a critical skill. Without it, you become a passive participant—an NPC—in the economic game, where inflation erodes your earnings despite your hard work. Asset ownership is the primary mechanism to escape this trap and actively play the game.