cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Ya had to quote the troll, didnt you? And I'd been doing so well by not clicking on 'view post' :
Ya had to quote the troll, didnt you? And I'd been doing so well by not clicking on 'view post' :
Twaddle, Defender of the Trolls, reporting for duty!
Troll? Troll! Where?! Let me at him! Sound the alarms! Call in the antibodies. Troll alert! Ahhhwooooga!
But you're not really interested in the actual discussion. You're just running around lighting the edges of things on fire to see what happens. Right?
But where's the graph for "real" inflation?
You're right, though; it's hard to argue with a website called shadowstats.com...
I'll say it again. 3% is irrelevant. Who cares if it's correct or not?
If your personal inflation rate is 10% then TIPS might be a bad deal for you if you're using them to stay ahead of your personal inflation rate.
If your personal inflation rate is 2% then TIPS might be good for you if you're using them to stay ahead of your personal inflation rate.
I disagree. Knowing exactly what the inflation rate is, has serious implications to my FIRE plan. I am buying real Estate. I expect to begin cash flowing within a couple years. An expected 3% per year gain via inflation against a 30 year fixed mortgage is one of my underlying assumptions. 4% over the long haul is much different than 3.
I'm slow this morning... how does inflation factor into your 30 year mortgage? Are you simply discounting future dollars by the inflation rate? Wouldn't appreciation matter as well?
Lets say for the sake of discussion that Im renting a Townhome for 1000 a month, and my mortgage is 1000 dollars a month. Really simplified but cash flow is even. If inflation is 3% a year and rents follow...what will my Rent be in 5-10 years? mortgage will remain constant.
So, inflationary pressure on Rental pricing is very important to me long term plan.
I just looked at Morningstar Yields for TIPS Funds. I know it is better to but them from Direct.
Vanguard wins like usual:5.01
Pimco:4.42
TRowe:1.44
Fido:1.96
Without digging in I do not know why TRowe and Fido cannot pay more than that. Vanguard fees are 0.20%.
Hardly CPI+2 which is around 4+2=6% last I heard.
I think this is the dream of ERs everywhere. All we want is a risk-free return of CPI+4% for the rest of our lives.
Why doesn't the market offer such a product? [Cue the annuity salesmen. ]
Unfortunately, I'm reading "Beyond Oil: The View From Hubbert's Peak," so
To be fair, an extremely good few years for REITs did follow, as well as good years for TIPS. Undiscounted for risk, the REITs did better.
Do you think that number is also manipulated? If not, how would it be possible for us to have a higher standard of living if prices went up faster than wages?
[Let the whining about how poor we are as a nation begin! ]
Are you better off today than you were 10 or 20 or 30 years ago? Is your standard of living higher or lower?
If it is higher, what was your wage growth during that period?
I don't know about you, but I think most people would say they have a higher standard of living than X years in the past.
Wage growth over the last 25 years was a bit less than 5%/year.
Do you think that number is also manipulated? If not, how would it be possible for us to have a higher standard of living if prices went up faster than wages?