Prices are going up. Consumer price inflation ballooned to 6.8% in November as massive increases in government debt and supply-chain issues over the last year were reflected. The Fed & Biden believe they can get back to a 2% annual average target, but clearly that’s going to take some doing. Retirement plans are especially susceptible to rising prices as fixed investments, pensions, bonds, and social … Continue reading What’s The Impact Of Inflation On Your Retirement?
We went to Target the other day for groceries and the bill came to $150. As we walked out to the Jeep to bring things home, my wife said, “I don’t even know what things are supposed to cost any more. Was that a good deal or did we overpay by a lot?” I agreed that inflation – year after year after year – begins … Continue reading Cut Those Prices In Half!
It was soon after my first MegaCorp pension check arrived in the mailbox that the latest CPI report was released with the most price inflation we’ve seen in more than a decade. My new pension payment is fixed – no cost of living adjustment – so I immediately had visions of it being quickly consumed by this monetary beast that has been lying in wait … Continue reading Inflation On The Way?
Inflation is one of the assumptions that our FIRE financial model is the most sensitive to. Even a half percent change in inflation over a 40 year retirement plan is hugely significant. We use an assumption that our spending inflation will be between 2.5-3.0% a year, which is slightly higher than what the official US Consumer Price Index (CPI) has averaged. I’ve read articles in … Continue reading How Fast Are Prices Really Rising?
I hope everyone enjoyed their Thanksgiving yesterday! We had turkey and watched some football at my brother & sister-in-law’s nearby house with our broader family. Wonderful day. When we were there, we got into the annual conversation about the Thanksgiving turkey, how much it weighed, and how much it cost this year. It got me thinking that most people do not probably realize what an … Continue reading Turkey Economics
After an ugly close to 2018, the financial markets have leapt off to a strong start in the new year with the S&P 500 up almost 7% year-to-date. While many of the economic issues that lagged the market are still unresolved, the bulls are running on Wall Street again. It’s amazing that in just 20 days, the market has gained back all of last year’s … Continue reading Inflation Expectations – Up or Down?
The economy is performing about as well as one could hope at this point in time, but you wouldn’t know it to watch political ads on TV. Despite quarterly GDP growth reaching 4%, the S&P 500 up +30% over the last two years, the unemployment rate at 3.9%, and consumer confidence approaching all-time highs – every political ad is full of gloom & doom. Despite … Continue reading Mid-Term Elections – Plan For More Inflation?
Our son headed back to college this weekend – ending our ‘No Responsibility January’ – and starting his Spring Semester. Among other things, this means we need to call our insurance agent this morning and take the car insurance off the vehicle that he drives when he is home. Car insurance runs about $900 annually for the 2004 Acura TSX that he drives when he … Continue reading Car Insurance Rising Fast
We had a great time this past weekend, going out to a movie, attending a black-tie gala, and seeing the hometown Minnesota Vikings win at their new stadium. It is always fun to get out and be entertained, but I am amazed at out how expensive things have become. Going through some old ticket stubs recently, I came across a stub from a Madonna concert … Continue reading The Price Of Entertainment Keeps Rocking Higher