Scary SORR Numbers

[statsman]

The house is paid off and it seems like too much effort to take out a mortgage. Non-cola pension. 45% in cash and fixed. Having expenses increase faster than the past few years in the future could impose some pain.

Time to do a search on "inflation hedge" threads!

Sounds like us with one non-COLA pension and one on SS. Even worse for us as we have far too little stock presence.

Our net worth the past three years has increased (yearly averaged) more than our yearly expenses have been those same three years, and this includes moving expenses and new house furnishings.

Our WR has been less than 0.3% and would disappear if I decided to start SS this year as I turn 62. So far, I see no reason to start SS, but it's always an option. Despite that, a sizable spike in inflation could challenge what is an extremely conservative portfolio.

 

[youbet]

a sizable spike in inflation could challenge what is an extremely conservative portfolio.

Yeah...... that's true.

For example, DW and I have been shopping Plan A CCRC's for a couple of years. We've noticed that formulas for calculating "your share" of LTC costs, if you wind up needing LTC, seem to have become more flexible in terms of the CCRC being able to have you pay more as their costs increase. (They are shifting inflation risk to you.) Ditto the basic monthly charges.

 

[NW-Bound]

I have 8 years left to live...

8 years guaranteed?

Oops, meant to write "8 years less" to live, meaning I am 8-year older than when I stopped work.

No, nothing is guaranteed. I may just drop tomorrow, or get run over by a proverbial bus.


PS. Considering that one's lifetime is never guaranteed, I should be happier than how I was 8 years ago. And I am. At least, I have had another 8 years added to my life, compared to back then.

 

[statsman]

No, nothing is guaranteed. I may just drop tomorrow, or get run over by a proverbial bus.

A manager I had years ago wanted everything documented because she espoused the "runaway train" theory.

 

[Koolau]

Feels like tempting fate, doesn’t it?

I just point out that we’ve had a very extended bull run in spite of the Mar-May downdraft (yet rapid recovery).

Yeah, I tend to agree which is one reason I tend to depend less on equities than most here. There has been a price for that - no doubling of the NW every few years like some here love to point out.

Actually, my fear is more in the inflation threat which everyone seems to pooh pooh (here and in the financial porn industry.) I lived through the late 70s and 80s. I recall seeing my favorite frozen food item going up a couple of cents week after week. Just because someone says it can't happen doesn't mean it can't happen. YMMV

 

[corn18]

Yup, it's been all rainbows and unicorns since 2009: