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03-26-2012, 08:18 AM
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#101
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Especially without raises and/or COLAs, as has been increasingly the case for households over the last few years.
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"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)
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03-26-2012, 08:23 AM
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#102
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Quote:
Originally Posted by ziggy29
Especially without raises and/or COLAs, as has been increasingly the case for households over the last few years.
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Not to mention substitution of lesser products when declaring the annual inflation percentage. I can't think of an example right now.
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Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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03-26-2012, 08:24 AM
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#103
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Aw, people! Did we not used to do this?
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"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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03-26-2012, 08:25 AM
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#104
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
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Yep! We sure did. We still love it, too.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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03-26-2012, 08:33 AM
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#105
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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But if we did not retire, then perhaps we might, just might still be able to do dis?
and then dis?
without getting like dis?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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03-26-2012, 08:34 AM
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#106
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,008
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Quote:
Originally Posted by NW-Bound
Aw, people! Did we not used to do this
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Actually, the most fun is arguing which formula is most appropriate for modeling a given scenario!
Audrey
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Retired since summer 1999.
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03-26-2012, 08:19 PM
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#107
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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Quote:
Originally Posted by BigNick
I calculate that after 10 iterations, you'd have 59.874 cents (0.95 ** 10, or 0.95 ^ 10 as the kids say these days ).
However, if inflation is defined as an increase in prices, then the corollary of 5% inflation is that after a year, $1 is worth not $0.95, but ($1 / 1.05) = 95.258 cents. Compound that nine further times (10 in total) and you end up with (0.95258 ** 10) = 61.391 cents.
You can check that by calculating (1.05 ** 10) = 1.62889 (that is, $1 invested at 5% compound with no deductions would give you $1.62889 after 10 years), and divide that into 1 => 1.0/1.62889 = 0.61391.
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Dammit, I should've known the board was big enough now to include one of you guys. I shoulda stopped at the Rule of 72.
I guess we're lucky that we're only talking a decade of annual inflation and not a century of quarterly inflation.
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
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03-27-2012, 04:41 AM
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#108
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Recycles dryer sheets
Join Date: Sep 2011
Location: Easten Long Island
Posts: 414
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Quote:
Originally Posted by Nords
Dammit, I should've known the board was big enough now to include one of you guys. I shoulda stopped at the Rule of 72.
I guess we're lucky that we're only talking a decade of annual inflation and not a century of quarterly inflation.
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A century of quarterly inflation @ 1/2% per quarter = 'a mere' 635%.
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