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Old 08-05-2010, 03:59 PM   #81
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Sounds like a decent outcome. Her current spending needs are met and roughly 1/2 her income stream is COLA'd. Should be at least a few years before inflation starts taking a toll on purchasing power.

Given that you and your DW are the ultimate honey pot, this plan should limit your exposure to that particular risk for quite a while. And limit the extent of the risk long term (ie you won't be hit up for basic expense money for quite a while since she has a partially COLA'd income stream).
Her basic living expenses are now covered by inflation-adjusted sources of income and one of her largest expenses (20% of budget) is her pets. Except for one, they are older and will probably pass on in the next few years and she won't replace them. So that's a huge deflationary expense. I am starting to feel some relief.
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Old 08-05-2010, 04:47 PM   #82
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Her basic living expenses are now covered by inflation-adjusted sources of income and one of her largest expenses (20% of budget) is her pets. Except for one, they are older and will probably pass on in the next few years and she won't replace them. So that's a huge deflationary expense. I am starting to feel some relief.
Even better news. So the $2500 spending is what she is spending now before major cost-cutting measures? I guess there would always be room to cut more as inflation slowly eats away at the real value of the non-COLA'd streams of income.
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