Did you send that thank you card to King Abdullah bin Abdulaziz Al Saud, the King of Saudi Arabia yet? No? I thought not.
The King has sent all Americans and Canadians a gift to help you with your retirement: lower gasoline prices. The Saudis refused to lower their output, which is driving down the price of oil and gasoline.
The average American will save $550 per year in 2015 according to the US EIA. Canadians may save somewhat less due to taxes, but still an appreciable amount. Other products like food will also be reduced in cost due to reduced transportation costs.
If you invest your $550 gift from King Abdullah in a retirement account (IRA), it will grow tax free at about a 6% rate of return and will be worth $1301 in today's dollars in 30 years assuming a 3% inflation rate. So don't blow your gift on a tattoo of Taylor Swift or new UGG boots for the whole family, save it for retirement. Reduce your monthly budget by $550/12 = $45 and put the savings in an IRA. The King would like that.
My Thank You Card is shown below:
Photo Credit: Flickr