Comments on: That little pup called inflation … http://7million7years.com/2008/06/24/that-little-pup-called-inflation/ How to make 7 million in 7 years ... Thu, 09 Sep 2010 20:21:16 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: AJC http://7million7years.com/2008/06/24/that-little-pup-called-inflation/comment-page-1/#comment-1383 AJC Thu, 26 Jun 2008 05:22:43 +0000 http://7million7years.wordpress.com/?p=206#comment-1383 @ Trainee - I used 30 years, because that's the shortest planning horizon that 'guarantees' a minimum 8% return (on a fund that mirrors the S&P 500) IF 75 years of history is anything to go by. Also, TIPS inside a ROTH IRA, or selected inflation-protected MUNI's outside, solve the tax issue ... I agree that the under-reporting of inflation is an issue in ALL retirement planning. @ Trainee – I used 30 years, because that’s the shortest planning horizon that ‘guarantees’ a minimum 8% return (on a fund that mirrors the S&P 500) IF 75 years of history is anything to go by.

Also, TIPS inside a ROTH IRA, or selected inflation-protected MUNI’s outside, solve the tax issue … I agree that the under-reporting of inflation is an issue in ALL retirement planning.

]]> By: traineeinvestor http://7million7years.com/2008/06/24/that-little-pup-called-inflation/comment-page-1/#comment-1382 traineeinvestor Wed, 25 Jun 2008 03:58:53 +0000 http://7million7years.wordpress.com/?p=206#comment-1382 Using "30" years is a a bit arbitrary. In some contexts it is too short - if I retire in my mid forties I might need to plan for 50 years (and my wife has a higher probability of needing to do so that I do). The bottom line on inflation is that given enough time, it will bite you and the only real protection is to keep the bulk of your money in investments which are likely to show returns which are higher than the rate of inflation. As an aside, most supposedly inflation indexed products will loose real value over time due to a combination of understated inflation and taxation. Using “30″ years is a a bit arbitrary. In some contexts it is too short – if I retire in my mid forties I might need to plan for 50 years (and my wife has a higher probability of needing to do so that I do). The bottom line on inflation is that given enough time, it will bite you and the only real protection is to keep the bulk of your money in investments which are likely to show returns which are higher than the rate of inflation.

As an aside, most supposedly inflation indexed products will loose real value over time due to a combination of understated inflation and taxation.

]]> By: AJC http://7million7years.com/2008/06/24/that-little-pup-called-inflation/comment-page-1/#comment-1381 AJC Tue, 24 Jun 2008 23:23:17 +0000 http://7million7years.wordpress.com/?p=206#comment-1381 @ Curt - I'm not an index fund saver (investor); nor am I a commodities speculator. But for the 99% who are looking for the 'slow road' I would back 30 years of Index Funds v 30 years of commodities (incl. gold, etc.) any day ... including TODAY :) @ Curt – I’m not an index fund saver (investor); nor am I a commodities speculator. But for the 99% who are looking for the ‘slow road’ I would back 30 years of Index Funds v 30 years of commodities (incl. gold, etc.) any day … including TODAY :)

]]> By: Curt http://7million7years.com/2008/06/24/that-little-pup-called-inflation/comment-page-1/#comment-1380 Curt Tue, 24 Jun 2008 18:50:13 +0000 http://7million7years.wordpress.com/?p=206#comment-1380 30 years isn't that long. I wouldn't count on an index fund that has been good for 30 years. It is just as likely to drop as it is to rise. And based the on the determination of the US economic conditions with a weak consumer confidence, weak dollar, high national debt, high personal debt, negative savings rate and a housing market crash, you can't be serious. It's time to put your money in commodities and precious metals, hedging against the next several years of increasing inflation as the Fed Reserve plays games with its monetary policy. 30 years isn’t that long. I wouldn’t count on an index fund that has been good for 30 years. It is just as likely to drop as it is to rise. And based the on the determination of the US economic conditions with a weak consumer confidence, weak dollar, high national debt, high personal debt, negative savings rate and a housing market crash, you can’t be serious.

It’s time to put your money in commodities and precious metals, hedging against the next several years of increasing inflation as the Fed Reserve plays games with its monetary policy.

]]> By: Q http://7million7years.com/2008/06/24/that-little-pup-called-inflation/comment-page-1/#comment-1379 Q Tue, 24 Jun 2008 12:13:27 +0000 http://7million7years.wordpress.com/?p=206#comment-1379 (c)Live fast die pretty! Wait, I'm not pretty now. Scratch that. Seriously though, with all the talk about saving for retirement, you never hear about the green eyed monster of inflation. Q (c)Live fast die pretty! Wait, I’m not pretty now. Scratch that.

Seriously though, with all the talk about saving for retirement, you never hear about the green eyed monster of inflation.

Q

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