Inflation >4% in Latest report!

[NW-Bound]

Eventually I guess I will have to get battery storage to take advantage of all the cheap solar.

It is not hard for electronic manufacturers to make a self-contained battery/inverter box that can be simply wired into the residential power distribution box like any appliance. It can then be programmed to charge itself up when the power is cheap, then pumps it back out when the rate is high. In order for the box to pump out just enough to meet the usage inside the home, all that is needed is a small clip-on sensor that measures the current to/from the grid. The inverter uses the measurement to ensure the net zero power flow to/from the grid during the high rate period.

Solar panels will be extra and not needed if one simply wants to arbitrage the different rates in a 24-hour period.

 

[Montecfo]

You ignored the growing poverty rate, which has only gotten worse since 2023, There are now more Americans without health insurance than in 2023. The concentration of wealth keeps worsening every year. There is now routine talk about the K-shaped economy. The budget deficit has gotten worse, and government debt has exploded since 2023. Inflation is now increasing every month.

I don't see how anyone can reasonably say that things are getting better overall.

I did not ignore anything. I simply summarized data from a study posted here.

That data, which I did not choose or post, directly rebuts many of the points you make above. With what appears to be rather solid data.

 

[Montecfo]

It is not hard for electronic manufacturers to make a self-contained battery/inverter box that can be simply wired into the residential power distribution box like any appliance. It can then be programmed to charge itself up when the power is cheap, then pumps it back out when the rate is high. In order for the box to pump out just enough to meet the usage inside the home, all that is needed is a small clip-on sensor that measures the current to/from the grid. The inverter uses the measurement to ensure the net zero power flow to/from the grid during the high rate period.

Solar panels will be extra and not needed if one simply wants to arbitrage the different rates in a 24-hour period.

That seems like a pretty good idea.

 

[GenXguy]

You ignored the growing poverty rate, which has only gotten worse since 2023, There are now more Americans without health insurance than in 2023. The concentration of wealth keeps worsening every year. There is now routine talk about the K-shaped economy. The budget deficit has gotten worse, and government debt has exploded since 2023. Inflation is now increasing every month.

I don't see how anyone can reasonably say that things are getting better overall.

Indeed, I keep hoping things will get better, but they are getting worse for so many. The only people that seem to suggest otherwise seem to be stating so for political reasons, not based on the facts.

 

[Katoslake]

There are real pressures on cost of goods- services and others that see this as an opportunity to charge more for goods and services. It’s convenient to blame the others for some of the higher prices- regardless of actual costs

 

[G POP]

All those other ways (athlete, ROTC, scholarships etc.) were always there. But for the B+ non-athlete student who just wants to get a degree, it's harder than it was.

When I was going to college in the late 80's, an Ivy League expensive 4 year was about $15k all in. That's about $43k in today's dollars. Other schools ranged from $5-12, of course state and being cheaper.

So, a range of $5k to 15k. Not hard to make $5k in summer and part time jobs even then. If that were just moved for inflation it would be $15k - $43k. Most kids needing the money could - today - find their way to $15k if they had to pay for it all.

However, today the real price is $90-$100 for the ivies. $30k for state schools.

So, now a range $30k-$90k. Education has outpaced inflation over that 40 year period by double. I don't know many 18 year olds who could finance $30k per year on a summer job and part time stuff.

Show me a B+ student who wants to go get a 4 year degree and I will show them how to achieve that goal with little or no student debt. I see kids making the wrong college decisions all the time. My DSIL as an example. He didn’t get into the engineering program at his in state school. He did get in however. Instead of going instate and moving to engineering program after one semester he instead went engineering out of state. 3-4 times the cost. Would have graduated with maybe 30k in debt. Instead had 150k debt.

Yes, I agree and understand that costs for college have outpaced inflation. Information on how to get a degree w/out huge student debt is easily available.

 

[Flieger]

Ok, you win.

If I were this group I would continue to get my $1000 iPhone, $700 car payment, live at home or with friends paying rent and not amassing any equity. All while telling the "old people" at work that they are just "too stupid", in so many words, to know how to work smarter, not longer and harder than your peers, so you can go home earlier in the day to enjoy a latte' on the way home before ordering door dash. I mean, their "smarter than ours work" should provide ample time to enjoy getting all we have accumulated over time in 1/4 the time, right?

Sarcasm, but this is not TOO far from the truth.

Flieger

 

[G-Money]

That sounds ridiculous, because it is. The young, the poor and vulnerable, and the disadvantaged, are not the cause of, nor to blame for for high prices, shrinking opportunity, and increasing competition for basic tenets of the American Dream.

G-MONEY

 

[sparky08]

20 good years, followed by these past six......

The U.S. annual inflation rate for the last 25 years (2001–2026) is visualized in the text-based bar graph below, based on year-over-year Consumer Price Index (CPI-U) data.

 

[Flieger]

20 good years, followed by these past six......

2 anomalies in the past 20 year chart you show really.

Flieger

 

[sengsational]

2026 can't really be in the chart because we have yet to see how the second half comes out.

 

[Flieger]

Do you have income streams kicking in downstream?

Yes. Directly, SS. Indirectly, reduction in HC costs with Medicare,

Flieger

 

[marko]

Yes. Directly, SS. Indirectly, reduction in HC costs with Medicare,

Flieger

Between those two, it reduced my withdrawals by $100k per year.

 

[latexman]

Between those two, it reduced my withdrawals by $100k per year.

I’m on Medicare now, and, God willing, I’ll file for SS next June at 70. Also at this time, DW will get a large spousal adder too.

I wholeheartedly agree with you. Yippee Ki-Yay!

 

[Route246]

There is a light at the end of the tunnel. Rates will be higher for savers. Stay short, ladder and then reap the rewards. Lock in higher rates. Live your life and be happy.

Music to my ears in terms of my MM treasury holding (SUTXX).

 

[Route246]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

I contend not but I may be wrong. If this is true that inflation does not materially affect high FI folks then there is little or no incentive to do much about it. Cynical, yes, but there may be some truth to this.

Wife and I were grocery shopping at Costco and the local market last week. I was making remarks about how much generic things cost and questioning how people living paycheck to paycheck deal with it. My wife as oblivious to prices, she sees something she needs and just adds it to the basket. I, on the other hand, still have their poor, starving student mentality and wince at the higher prices even though it has zero effect on our quality of life.

Personally, inflation is really a non-issue for me.

 

[SecondCor521]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

Over the short and intermediate term, no.

I do have a high (100%) allocation to equities to attempt to minimize inflation risk over the long term (30 years).

 

[GenXguy]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

I contend not but I may be wrong. If this is true that inflation does not materially affect high FI folks then there is little or no incentive to do much about it. Cynical, yes, but there may be some truth to this.

Wife and I were grocery shopping at Costco and the local market last week. I was making remarks about how much generic things cost and questioning how people living paycheck to paycheck deal with it. My wife as oblivious to prices, she sees something she needs and just adds it to the basket. I, on the other hand, still have their poor, starving student mentality and wince at the higher prices even though it has zero effect on our quality of life.

Personally, inflation is really a non-issue for me.

Yes, I take action to reduce spending where I can, in particular, less discretionary spending.

 

[ShokWaveRider]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

In short, not at all. In fact if rates increase it is good for us.

All the noise it creates can be annoying though.

 

[audreyh1]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

I contend not but I may be wrong. If this is true that inflation does not materially affect high FI folks then there is little or no incentive to do much about it. Cynical, yes, but there may be some truth to this.

Wife and I were grocery shopping at Costco and the local market last week. I was making remarks about how much generic things cost and questioning how people living paycheck to paycheck deal with it. My wife as oblivious to prices, she sees something she needs and just adds it to the basket. I, on the other hand, still have their poor, starving student mentality and wince at the higher prices even though it has zero effect on our quality of life.

Personally, inflation is really a non-issue for me.

It definitely does in that higher inflation more quickly erodes the purchasing power of our portfolio. However, so far, we can still afford what we want.

 

[CalBird]

Government published inflation number and everyone’s personal inflation number can be substantially different therefore everyone feels differently when gas price goes up. Gas price from $3 to $6 can have immediate impact on someone, while the guy who is driving Maserati may not even pay attention to it. The real risk for retirement community is long term high inflation when the economy growth is slow so the portfolio got depleted quickly.

 

[Montecfo]

Biggest impact is fuel. We do not use much so no big impact.

Beef is really expensive, so much so I do not see the value unless it is on sale. But other meats still reasonable and pork remains downright cheap.

I am prepared for crab to be really expensive when I start buying it. Because they are effected by fuel and lack of pickers. But so good.

But we can easily afford our lifestyle and our equities have "inflated" enough to more than offset higher costs.

 

[TripleLindy]

Young kids today aren't having trouble affording things we had at our age, they are having trouble affording things that they want at this age. If they were willing to settle for the same house of the same age we had to start, they wouldn't have any problems, but they won't. They want it all, they want it now, they don't want to wait, save, scrimp or sacrifice. They don't want a car that'll get them to work they want a new car that cost today more than my first HUMBLE house cost.

I don’t think that’s accurate, certainly not applied generally. The ratio of price to income has gone up substantially for just about everything, but especially high dollar items like houses and cars. We bought our first house for $68k, new construction. Very small, less than 1200sqft and built on a lot 1/2 the size of a normal residential lot with a driveway shared by 4 houses. I was making around $25k at the time, so the house was less than 3x my annual income. The average house price to income multiple is now 5x. And it’s not just because houses are larger now. That house we purchased for $68k more than 40 years ago recently sold for almost $300k. And the neighborhood is now absolutely awful and run down. I’m talking ghetto standards.

 

[Mr. Tightwad]

For anyone FI, especially those many times FI, does inflation materially affect your overall quality of life?

Not at all.

With each passing year I check the restaurant bill less and less. I do what your wife does and just buy stuff at the grocery store without checking. This would be a great departure compared to the former me.

Why sweat stuff when the portfolio keeps going up, rents collected keep going up, house values keep going up, checking account is frothy..

I still do plenty of amazing cheap maneuvers on a daily basis, it's in me.

Gf made a comment to me recently. "You live like your poor but you're not".

But as far as the effect of inflation, I don't do anything different.

 

[iloveyoga]

Prices at the grocery store!