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Old 11-10-2017, 04:12 PM   #121
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cd's lagged inflation more often than not historically . back in those high interest days cd's were always behind the curve . it was nice once inflation fell to have a long term cd but that was only after inflation fell .
Agreed. However bond funds will also be behind the curve. The age old question is where to go? I'm big time CD ladder investor and willing to lag a little.
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Old 11-11-2017, 03:55 AM   #122
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historically intermediate trm bonds have tracked inflation for the most part but they still are a poor choice alone to try to live off of unless your draw is quite low .
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Old 11-11-2017, 09:22 AM   #123
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For those who haven't seen it, this is a nice article discussing the librarians choice:
Considerations for Cashing Out of the Stock Market
It does a good job highlighting the benefits of not completely cashing out of the market and retaining some equity allocation
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Old 11-11-2017, 09:38 AM   #124
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For those who haven't seen it, this is a nice article discussing the librarians choice:
Considerations for Cashing Out of the Stock Market
It does a good job highlighting the benefits of not completely cashing out of the market and retaining some equity allocation
So, another vote for "always at least 20%" in equities?
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Old 11-11-2017, 10:48 AM   #125
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Given history, sure. I think anyone pulling out of the market completely has to know that they're essentially living off of savings, not expecting a return. With increased risk, not less, if using bonds only.
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Old 11-13-2017, 07:37 AM   #126
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It's a general account fund that our company contracted with Mutual of America for back in 1979. [...]

If worse comes to worse, we have my husband's pension, which goes to me if he should not out live me. We have some other options and resources as well.
Thanks for your reply, Ally! Sounds like a solid plan.
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Old 11-13-2017, 09:04 AM   #127
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This. TIPS track actual, not average historical inflation (as measured by CPI), don't they?







That's of course true, but don't you think that 'personal' inflation will usually be reasonably close to CPI? Especially if you are willing to make some adjustments? The one exception I could think of is if you are renting in a booming housing market. That could be a major item on your budget going up way more then CPI. But apart from that? If you own your primary residence (as I suppose most posters here do), mortgage-free or with a longer-term, fixed rate mortgage, I would expect your personal inflation to be close to (or usually below) CPI.

I know that our personal inflation rate is very low. Single biggest item is the mortgage, and that is fixed for the next ten years. Now if beer increases ten-fold, guess I'll drink more scotch instead.


Our personal inflation is typically higher than CPI. We spend a lot on travel, dining out, and entertainment. Those inflation rates seem a lot higher than CPI. Healthcare inflation far exceeds CPI. CPI is such a narrow basket that I think many people's personal inflation would not track with CPI.
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