Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
COLA fading?
Old 07-24-2010, 11:54 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
COLA fading?

Part of an email that I received from MOAA says this about COLA possibilities~Inflation dropped 0.1% in June. Unless that trend is reversed significantly in the next three months, prospects are dimming for any retiree COLA in 2011.


Quote:
The Bureau of Labor Statistics announced the June CPI-W of 213.8 which is a decrease of 0.1% from the May CPI-W of 214.1.

The June CPI-W is now down .8% from the 2008 COLA base of 215.5. The 2008 COLA base will be used to calculate the 2010 COLA since there was no 2009 COLA as a result of negative inflation from the third quarter of 2008 to the third quarter of 2009.


----------------------------------------------





__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-24-2010, 12:02 PM   #2
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
The CPI is becoming more and more of a joke. At least it is for people who are frugal and don't buy a lot of big ticket discretionary stuff. There's no way I'm going to believe that the price of the essentials aren't rising.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-24-2010, 12:07 PM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,949
I'm pretty sure (from what I have read in various articles) that federal employees probably won't receive a COLA raise in 2011, and might not in 2012 either.

But, luckily a 2011 COLA isn't going to affect me either way. I think I wouldn't get a COLA (well, a FERS "diet COLA") until 2012 since I just turned 62 this year. Maybe we will get one in 2012.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 07-24-2010, 01:14 PM   #4
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
OTOH, it's a positive outcome for those on a non-COLA pension (the few on pension, that are not government folks) or those like me, who took a chance on a non-COLA SPIA.

In my case, it works out well since I decided on a non-COLA to keep my payments higher and act as an "income gap" from the time I retired till I "trade it in" to draw SS (COLA adjusted) at age 70.

I agree that there is inflation, regardless of how they "cook the numbers", however it is not as painful as it was back in the 70's.

I look at it as the cup half-full, from my little spot of the world ...
__________________
rescueme is offline   Reply With Quote
Old 07-24-2010, 01:29 PM   #5
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by rescueme View Post
I agree that there is inflation, regardless of how they "cook the numbers", however it is not as painful as it was back in the 70's.
Yeah, there's no question that inflation isn't currently raging, but just about all the deflation cooked into the CPI (apart from chicanery like substitution and hedonistic adjustments) is in the big ticket discretionary items, not in the basic necessities. LBYM types who buy almost nothing but the necessities are almost certainly experiencing personal inflation considerably higher than the CPI.

On the other hand, if you have a reliable and secure income stream it's a great time to be a buyer of discretionary "stuff". It's a strange world we're living in now with a strongly inflationary monetary policy and strongly deflationary demand.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-24-2010, 08:01 PM   #6
Recycles dryer sheets
Pete's Avatar
 
Join Date: May 2008
Posts: 350
The Tax Foundation keeps track of how much of the 8 hour work day goes to what;

http://www.taxfoundation.org/files/sr160.pdf

My "personal CPI" has gone down in every catagory except taxes. I think it would be the case for most retirees. Since it's mostly retirees who worry about COLA raises in Social Security, looks like a winner.

Do they count taxes when figuring COLA? If not they should. It's gonna be the single biggest obstacle in our future, perhaps along with healthcare.
__________________

__________________
Pete is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
COLA cool off? mickeyd FIRE and Money 30 09-25-2008 12:02 PM
COLA questions Texarkandy FIRE and Money 14 09-17-2008 07:28 AM
COLA will be at least 6.2% for Jan checks mickeyd FIRE and Money 29 08-23-2008 07:48 AM
COLA, anyone? mickeyd FIRE and Money 1 04-29-2007 11:48 AM
COLA mickeyd Other topics 0 09-17-2006 06:15 PM

 

 
All times are GMT -6. The time now is 09:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.