cute fuzzy bunny
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Edit: I missed cute fuzzy bunny's comments, she says her father lost 30%
Got another one!
Edit: I missed cute fuzzy bunny's comments, she says her father lost 30%
Keep detailed records of what you spend. Compare the increase every year. We happen to use Quicken but a simple spreadsheet would work too. Details are dependent on the user.
Thanks cutie, I will be forever grateful! I think you may be second behind possibly Barbarus. This is tough work
But maybe in the final analysis that does not matter.
Only "very" short term bonds for me.
As bond investors, we should not be in the camp of wanting them to fudge the rate.
Marquette, if you are saying that "possible" significant (several % points) of inflation does not matter, I don't agree at all. No surprise there. Keep buying those TIPS!
In 30 years the maybe there will be a tasty hedonic substitution for ALPO.
I agree. I'd be pissed if I thought they were fudging the rate, but I like the fact that the CPI calculation is transparent, I like that it is consistently higher than other metrics (like the GDP deflator), and I like the fact that the bond market determines yields on bonds -- not the government.
Sorry, I thought that was what you meant by your previous post that quoted something to the affect of "it doesn't matter", my apologies. Sometime intent is hard to read, I jumped to an invalid conclusion.
Lets say I think it might be actually 5 or 6% now. Yes I am willing to take a lower than inflation rate of return right now because the risk of longer term bonds is higher in my opinion. I do not like it and wish the governemnt was not fudging the rate (of course assuming they are), but what can I do. I'd rather sit here and lose out slowly to inflation than risk a loss of capital in a bond fund. If the government is fudging the rate at all, borrrowers (including the US Treasury) get rewarded with lower rates while investors in bonds get stiffed. As bond investors, we should not be in the camp of wanting them to fudge the rate.
Brewer, I think my answer it simple. I am a conservative investor and need a large portion of income in my portfolio. I need to lower volatility, not increase it. Hard assets are way too volatile for much very of my money. I want to be a fixed income investor.