My memory is fuzzy, but during 1980-1981, my credit union at work was paying 14%+. But at the same time, my 30-yr mortgage was also at 14%. I was young and just starting out on my career, and did not have a whole lot of money to invest, so did not follow the economic news much.The main factor I see is real interest rates, not necessarily high inflation. If inflation is at 10% and credit union CDs are paying 12% then inflation may not be an issue even holding safe assets CD ladders. Have real interest rates on "safe" assets generally been positive? Longer term TIPS yields prior to the current Fed policies of low interest rate have generally been ~2% + inflation.
How have credit union CD ladders fared historically compared to a 60/40 portfolio during high inflation periods? I don't know, just asking.
So NW-Bound is becoming NE-Bound? What is this world coming to?
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And before you know it, NW-Bound may become a socialist too.
Just joking. There's little chance of that.
Financially capable? I often mention here that my modest motorhome is not just for travel, but also my housing of last resort. It's my security blanket, to assure me that I will not be sleeping under a bridge, no matter what happens. And I am half-serious (wife does not want to hear it though).
Yes. We cannot take it with us. Some people worry about having enough money until their 100s. I am never that optimistic that I will live that long, but if I do, I am sure I will not be so caring about spending much money when I get to that age.
So, 3%WR or 4%WR, it may not matter that much, if we realize that if things turn out worse than we thought, we have the ability to cope. Humans always do. Even here in the US and not some 3rd-world countries, we see people whose life get devastated by hurricanes, tornadoes, floods, etc... And they survive. And of course there are personal tragedies happening every single day that people never thought that could happen to them or their loved ones, and these are things that one can never plan for.
Back on FIRECalc and retirement calculators, there's really no reason to worry so much about it. Unclemick never did run any FIRECalc when he went into not-quite-voluntary retirement, and he managed to do fine (and have war stories to tell ).