Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
COLA Watch
Old 02-20-2009, 12:53 PM   #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: 5,881
COLA Watch

MOAA email that I recently received reports that inflation is back and eating away at the 5% deflationary hole that was dug last quarter.

Quote:
The Bureau of Labor Statistics released the January consumer price index (CPI), the metric used to calculate the annual cost of living adjustment (COLA).
For the first time this fiscal year, the metric actually increased, at least partially eating away at the 5.0% hole left by months of deflation. Cumulative inflation for FY09 now stands at a -4.5%.
The four-month cumulative inflation figure hasn't been this low in the last 40 years. Check out how this year's CPI compares to the last two years.
If inflation is negative for the entire year, retirees would see no COLA. The law doesn't allow a negative COLA for military retired pay, SBP, Social Security, etc.
__________________

__________________
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 02-20-2009, 01:49 PM   #2
Recycles dryer sheets
 
Join Date: May 2008
Posts: 119
This will be my first COLA year, as I just retired on 31Dec. I really don't care if we get a negative COLA, as our money won't lose anything and we will actually benefit from it vice getting a COLA in addition to $4/gal gas.

I would gladly give up my stopping by for a "COLA" when I can get cheaper gas.
__________________

__________________
Boxkicker is offline   Reply With Quote
Old 02-20-2009, 03:00 PM   #3
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Quote:
Originally Posted by Boxkicker View Post
This will be my first COLA year, as I just retired on 31Dec. I really don't care if we get a negative COLA, as our money won't lose anything and we will actually benefit from it vice getting a COLA in addition to $4/gal gas.

I would gladly give up my stopping by for a "COLA" when I can get cheaper gas.
You may think differently in 30 years when $1 could have become $3 with the COLA, but remains $1.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 02-20-2009, 03:22 PM   #4
Recycles dryer sheets
 
Join Date: May 2008
Posts: 119
Even if retirees donít get a COLA increase, they wonít lose out. The COLA is designed to maintain retireesí purchasing power as inflation rises. If the cost of living falls, but retiree pay remains steady, their purchasing power increases.
__________________
Boxkicker is offline   Reply With Quote
Old 02-20-2009, 03:23 PM   #5
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Boxkicker View Post
Even if retirees donít get a COLA increase, they wonít lose out. The COLA is designed to maintain retireesí purchasing power as inflation rises. If the cost of living falls, but retiree pay remains steady, their purchasing power increases.
Of course, there's the *real* change in the cost of living and what the government says the change in the cost of living is. But I digress...
__________________
"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 02-20-2009, 03:37 PM   #6
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,244
Quote:
Originally Posted by ziggy29 View Post
Of course, there's the *real* change in the cost of living and what the government says the change in the cost of living is. But I digress...
Only too true, Ziggy. However, having lived without any official COLA for 35 years (first 5 years of wo*k - I had one) I'm sorta looking forward to a COLA'd ANYTHING! Even if it's not the "real" thing, it's better than my pension which has no COLA.

In fact, I'm sorta looking at SS as my pension's COLA. How sad is that? But YMMV.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 02-20-2009, 09:22 PM   #7
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by mickeyd View Post
MOAA email that I recently received reports that inflation is back and eating away at the 5% deflationary hole that was dug last quarter.
So, all of the stimulus programs are succeeding beyond our wildest dreams?
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 02-21-2009, 01:47 AM   #8
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 404
I've already conceded not getting a COLA this coming fall. The indexes were high last year, and have been falling until this month. It would take some big increases to get above the Jul-Aug-Sep numbers from last year.

The upside is the numbers will probably look good in 2010, if this year remains low.
__________________
BLS53 is offline   Reply With Quote
Old 02-21-2009, 05:56 AM   #9
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Quote:
Originally Posted by ziggy29 View Post
Of course, there's the *real* change in the cost of living and what the government says the change in the cost of living is. But I digress...

This is one of my concerns. I have planned for a 1.5% to 2% COLA creep or is that a leak in my pension.

Bruce
__________________
I wish I was half as good as my dog thinks I am!
bruce1 is offline   Reply With Quote
Old 02-21-2009, 07:19 PM   #10
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 404
Quote:
Originally Posted by bruce1 View Post
This is one of my concerns. I have planned for a 1.5% to 2% COLA creep or is that a leak in my pension.

Bruce

The trick is to live in an area with a CPI that lags the national average.

Not everyone can, or will, do that I suppose.
__________________

__________________
BLS53 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 Watch mickeyd FIRE and Money 5 08-18-2007 05:18 PM
Watch not working (literally, about a watch) Orchidflower Other topics 8 07-23-2007 05:14 PM
COLA Watch mickeyd FIRE and Money 3 06-15-2007 04:15 PM
COLA Watch mickeyd FIRE and Money 2 01-19-2007 07:14 PM
COLA Watch mickeyd FIRE and Money 13 08-20-2006 06:00 PM

 

 
All times are GMT -6. The time now is 02:48 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.