Latest Inflation Numbers and Discussion

[Aerides]

I seem to recall in my early days of retirement planning, and first learning about the 4% rule, the expectation for inflation in your targets would be 3%.

Basically, on average, if your investments earned 7%, inflation took 3%, and you had 4% for your SWR.

So, anyone planning to retire and expecting a 2% inflation average on the long haul is going to have a higher risk of failure. I don't care what the FED goal is, so much as I care that I have planned for to allow for a financially secure future in retirement.

 

[ShokWaveRider]

We are not as well of as others here either. However, we really did not change our habits re spending. Yes, we noticed it. Did it affect our daily lives? Not really.

 

[FREE866]

We are not as well of as others here either. However, we really did not change our habits re spending. Yes, we noticed it. Did it affect our daily lives? Not really.

Same. Another way I look at it is that inflation has allowed corporations to raise prices and help their profits which help their stock price to an extent . So owning stocks have helped out my overall picture.

 

[audreyh1]

We are not as well of as others here either. However, we really did not change our habits re spending. Yes, we noticed it. Did it affect our daily lives? Not really.

Same here. Ironically we were underspending for a long while since our portfolio was doing so well. Inflation has closed some of that gap.

Also our net worth is not nearly ahead of inflation as much as it was before 2020. Oh well, at least it’s still ahead (knock on wood).

 

[ShokWaveRider]

We are actually spending more and more as we cannot take it with us and have no heirs. Our investible assets are still increasing more than we spend and we do not invest in the stock market anymore either.

 

[Chuckanut]

True, but perhaps the goal posts weren't in the right place to begin with so it is just fixing it.

That’s possible. And, it would be nice if whoever owns the stadium admitted the error and told us of the fix. After all, it could likely change some of the game plans.