Inflation spurts vs. your placement on the life cycle

[jeff kushner]

ramblings....be warned!

I saw a mention that Tom had made about his radiators used to cost 34 bucks.....and it got me to thinking......be afraid guys, be very afraid;


How badly these spurts of inflation hurt us is often dependent on where we are in our careers, our family situations.....in effect, where we are on the great cycle of life.

From my observations, for those at the peak of their earnings, it likely wasn't a big deal other than the sticker shock. They still hired the guy to build the deck, finish a kitchen or whatever.

For those in their 20's, single and living alone, those can be horrible times and last year for parents it was worse with gas/food doubling at the same time. I think we can all agree on that.

However, for those who have planned their last 20--40yrs and saved then retired, there is little to do but to watch those funds shrink......and it can be frightening. I knew folks in '09 that had to come out of retirement when their 401K's vanished. Tom Roberts, one of my mentors & prince of a man, came out of a very happy and carefree retirement & worked until he passed. Just horrible.

I saw this in the 90's as the old relatives who worked when gas was 29 cents a gallon...... retired when it was $2.65 then couldn't live on the $578 they got each month from Social Security. Most of the Expats I have met overseas fall directly into this category I learned. They aren't living in a 3rd world country because it's beautiful although many are, they are there simply because it's cheap. I know because I have met and dined with many during my own search for another home.

I do NOT want to buy a new car today.....I bought a new limited '17 Expedition for 55K out the door incl MD tax from a list price of 66K, today that same truck is $82K with folks only getting 3-5K off list. So even at 78K, it's a 50% increase in price over mine, only 6 yrs ago! Yikes! My problem is that I drive a lot and have 159K (completely troublefree) on it now and it's not going to last forever. In two more years when I retire, it will have 220K if it lasts!


With that kind of just bad behavior, I'll bet I can drive that 192K mile Mercedes I have till tucked in the garage until the wheels fall off of it! That thing is built to last!

I'm not really sure where Kerry & I fit in, one thing that I'm really glad about is that being old, I already have more toys and "stuff" then I can ever possibly use so there really isn't any drive to get anything and Kerry is as good as I am or better at making what you have, work.

just ramblings....guess I should do some work today?

 

[Tom]

ramblings....be warned!

I saw a mention that Tom had made about his radiators used to cost 34 bucks.....and it got me to thinking......be afraid guys, be very afraid;


How badly these spurts of inflation hurt us is often dependent on where we are in our careers, our family situations.....in effect, where we are on the great cycle of life.

From my observations, for those at the peak of their earnings, it likely wasn't a big deal other than the sticker shock. They still hired the guy to build the deck, finish a kitchen or whatever.

For those in their 20's, single and living alone, those can be horrible times and last year for parents it was worse with gas/food doubling at the same time. I think we can all agree on that.

However, for those who have planned their last 20--40yrs and saved then retired, there is little to do but to watch those funds shrink......and it can be frightening. I knew folks in '09 that had to come out of retirement when their 401K's vanished. Tom Roberts, one of my mentors & prince of a man, came out of a very happy and carefree retirement & worked until he passed. Just horrible.

I saw this in the 90's as the old relatives who worked when gas was 29 cents a gallon...... retired when it was $2.65 then couldn't live on the $578 they got each month from Social Security. Most of the Expats I have met overseas fall directly into this category I learned. They aren't living in a 3rd world country because it's beautiful although many are, they are there simply because it's cheap. I know because I have met and dined with many during my own search for another home.

I do NOT want to buy a new car today.....I bought a new limited '17 Expedition for 55K out the door incl MD tax from a list price of 66K, today that same truck is $82K with folks only getting 3-5K off list. So even at 78K, it's a 50% increase in price over mine, only 6 yrs ago! Yikes! My problem is that I drive a lot and have 159K (completely troublefree) on it now and it's not going to last forever. In two more years when I retire, it will have 220K if it lasts!


With that kind of just bad behavior, I'll bet I can drive that 192K mile Mercedes I have till tucked in the garage until the wheels fall off of it! That thing is built to last!

I'm not really sure where Kerry & I fit in, one thing that I'm really glad about is that being old, I already have more toys and "stuff" then I can ever possibly use so there really isn't any drive to get anything and Kerry is as good as I am or better at making what you have, work.

just ramblings....guess I should do some work today?

You are spot on. I'm now sitting in a position where I can clearly see all of the positions you mentioned. I've either been there, or I am close to others and watching them navigate through there.

After my experience at the reptile show this weekend, I can offer a solution: Breed reptiles. Find a species you love and is practical for your location, take an educated guess about the market, and enjoy doing what we reptile keepers do. Reap the rewards.

Or we can revolt against this awful overreach, corruption and tyranny and have a horrible bloodbath...

 

[Maggie3fan]

I had a great career as an over the road truck driver until an injury forced retirement...now with the economy what it is...I own a manufactured home...when I moved in here 17 years ago the space rent was $300...now it's $700 and one more rent increase will put me on the street...it's that f'ing close.

 

[Yvonne G]

Very scary stuff. I'm 84, so haven't many years left to worry about it. My house and truck are paid for. But each year when I get my Social Security info for the coming year the amount of the increase in my monthly stipend is so small it cost more to send me the notice than I'm getting. I spend way more each week on tortoise food than I spend on groceries for myself, and I'm buying less because prices are so high I just can't afford to buy more. So I do without.

 

[Cathie G]

And this year we got a bigger raise on social security for inflation. How can they even think it will come close🤔 their mental capacity is less than my brother's. So they can't do simple math? Even Joe can do math. Hmmm

 

[Megatron's Mom]

You are spot on. I'm now sitting in a position where I can clearly see all of the positions you mentioned. I've either been there, or I am close to others and watching them navigate through there.

After my experience at the reptile show this weekend, I can offer a solution: Breed reptiles. Find a species you love and is practical for your location, take an educated guess about the market, and enjoy doing what we reptile keepers do. Reap the rewards.

Or we can revolt against this awful overreach, corruption and tyranny and have a horrible bloodbath...

My husband had a pretty good plan for retirement. He could retire pretty young. He married me got 4 instant kids then was crazy enough to want 2 more. That was my limit Seeing prices sky rocket has put a few changes in his plans. I would love much more land but house prices have also jumped up crazy. The egg prices are crazy. I need to up my prices as feed has also jumped up in the last 6 years I've had chickens.

My older daughter has talked about breeding her Hognose snakes. She has a male and female now thanks to the last reptile show. Now after your comment it makes me think. We have enjoyed going to these shows. I'm waiting on Amazon Milk Frogs when the weather gets nicer. We have a Crested Gecko and a Gargoyle Gecko thanks to the EXPO. Lizards, frogs and chickens already take over our house and yard. What else can I add Maybe I need more tortes then just one

 

[Cathie G]

My husband had a pretty good plan for retirement. He could retire pretty young. He married me got 4 instant kids then was crazy enough to want 2 more. That was my limit Seeing prices sky rocket has put a few changes in his plans. I would love much more land but house prices have also jumped up crazy. The egg prices are crazy. I need to up my prices as feed has also jumped up in the last 6 years I've had chickens.

My older daughter has talked about breeding her Hognose snakes. She has a male and female now thanks to the last reptile show. Now after your comment it makes me think. We have enjoyed going to these shows. I'm waiting on Amazon Milk Frogs when the weather gets nicer. We have a Crested Gecko and a Gargoyle Gecko thanks to the EXPO. Lizards, frogs and chickens already take over our house and yard. What else can I add Maybe I need more tortes then just one

Two torts would be fun 😜😁😊

 

[wellington]

Do not let this go political. Any political posts will be deleted.

 

[Cathie G]

Do not let this go political. Any political posts will be deleted.

Yeah.

 

[ZEROPILOT]

When I looked into retiring "early" and entered the DROP system, I did the math and decided that things would be great. I'd get a lump some that would pay off everything we owed and there'd still be a nice check coming in every month too.
Now, nine years later and retired for almost 4 years, things are very different.
That stockpile of cash has a big hole in it. The monthly pension check doesn't spread as thickly as it should and expenses everywhere are much more than I'd anticipated. Definitely outpacing my "cost of living" raises.
Still. I'm very fortunate. I'm still able to work a bit and I have skills that are in high demand. The pension check that covers almost everything is something that most people do not have. So I'll never complain about it.
My health insurance and home owners insurances alone are now over $15,000 a year for the two. (That's just insurance)
I did not anticipate any of this. I anticipated costs going up. But not like they have.
There are many reasons why everything costs so much now. I'm not sure we'll ever be made "normal" again. Or if this is the new normal.

 

[Len B]

When I looked into retiring "early" and entered the DROP system, I did the math and decided that things would be great. I'd get a lump some that would pay off everything we owed and there'd still be a nice check coming in every month too.
Now, nine years later and retired for almost 4 years, things are very different.
That stockpile of cash has a big hole in it. The monthly pension check doesn't spread as thickly as it should and expenses everywhere are much more than I'd anticipated. Definitely outpacing my "cost of living" raises.
Still. I'm very fortunate. I'm still able to work a bit and I have skills that are in high demand. The pension check that covers almost everything is something that most people do not have. So I'll never complain about it.
My health insurance and home owners insurances alone are now over $15,000 a year for the two. (That's just insurance)
I did not anticipate any of this. I anticipated costs going up. But not like they have.
There are many reasons why everything costs so much now. I'm not sure we'll ever be made "normal" again. Or if this is the new normal.

Like you I retired at a younger age 51. I had to wait over 10 years for SS to kick in. Today in my 70s things have worked out as planned except for the death of my wife almost 6 years ago. My homeowners and health care insurance costs right at $200 a month. I have great health insurance through the union I joined in 1968. The only out of pocket money is the SS deductible each year. Betty's hospital bill's were over $240,000 and every cent was covered. So I'm ok with those 2 expenses, and I understand what a burden they are for a lot of people. Food prices are way up on some items here but some aren't. Since I buy food just for the pups, the tortoise's and me. I can wait for sales and find reduced items and stock up. Just in the last couple weeks I've bought pork picnic, boston butt and whole hams for $.99 a pound and beef roast for $3.99 a pound. Ground beef $2.99. I use a lot of ground beef because of the many different ways to fix it. Dog and cat food and treats have gone up noticable. I went to Tractor Supply earlier this week and spent $211 on wild bird seed and dog treats. I have 5 dogs

 

[jeff kushner]

I thought it was cool that W chimed in to remind a nonpolitical discussion that it should remain non-political. The group is being "good" W!
We got this! LOL

Is it interesting, or just predictable that only older folks posted their thoughts in this thread? No young Mom's and Dads though I'm sure we have plenty in our membership.....hmmm. Maybe they're too busy working to make ends meet to take care of their families to respond to frivolous comments.

I'm sorry for your loss Len, I can't imagine. 200 bucks on wild birds/dogs.....what was the split? LOL 32 bucks for bird seed, 180 bucks in BACONBITS!! LOL

It's just the human condition we find ourselves in. To me, dealing with rising costs is a bit of a game. Generally, not everyone raises their price on an item at the same time so a good search can find "yesterdays price". This doesn't work with things like eggs or cookies....so I simply choose not to support gouging. I don't need to, the store is filled with other foods! Food wise, I've always had a classic pallet so this gives me a chance to explore.....a little, weird foods scare me! LOL

None of us know when the clock is going to stop for us.......and Y, you're going to be around longer than you think, cause you have things that you care about, like US! Heck, Bobby was by my side till he was 82 then he retired a year ago to go jet skiing! You strike me as a strong willed, rugged woman who doesn't whine, you aren't going anywhere! You'll just get messier...LOL

I don't disagree with Tom on having a side business as an income stream for many people. I now know why all the folks working at Lowes, are my age or older....a few bucks and something fun to do. I ran a successful fleabay business for a bit by focusing on a nitch and it took very little physical work, mostly shipping small flat rate boxes!

I've always though it was horrible for folks forced into stopping the work that they love., then forced to deal with the downhill financial effects. After working all your life, you shouldn't have to worry about money, period. Just seems like a real crappy deal. Most of my friends who have taken disability have died already, that's just the fact. Kerry knew two of them from my vintage motorcycle group that used to meet up in Ohio each year, both were years younger than me and they died poor and struggling, selling their prized possessions just to make ends meet. A pretty sucky way to go out if you ask me. I was blessed and I know it, that I was never hurt at work. I was warned by an old plumber when I began the trade...."don't get hurt" and I listened, mostly.

So going into retirement,

The cold reality for most of us is simple..................no matter how we plan, we won't have enough to live as well as we do today. Inflation will overtake us. This is a near-certainty for most of us.

So knowing that, do you scrimp today for tomorrow or enjoy today?

I know that it's heresy for my generation, but after raising my family, I choose today..................I can't live by "planning to be happy" , I may be dead by then, especially with all the stupid crap I do!


LOL

 

[AmandaF]

Dear all.

it is good to have a ramble and say how we feel.

I can see where you are all coming from. I hope you don’t mind me saying Yvonne G. I would never had guessed your age, you are young at heart.
in 2011, I had surgery that went wrong. at the end of 2014, I had to stop work as I could no longer cope. I have tried to return to work, however, due to chronic & insomnia this is impossible.
Mac my Labrador & beautiful Ernie my leopard tortoise 🐢keep me same.
I am so grateful to this site as the advise has improved Ernie’s quality of life.
Amanda x

 

[wellington]

I thought it was cool that W chimed in to remind a nonpolitical discussion that it should remain non-political. The group is being "good" W!
We got this! LOL

Is it interesting, or just predictable that only older folks posted their thoughts in this thread? No young Mom's and Dads though I'm sure we have plenty in our membership.....hmmm. Maybe they're too busy working to make ends meet to take care of their families to respond to frivolous comments.

I'm sorry for your loss Len, I can't imagine. 200 bucks on wild birds/dogs.....what was the split? LOL 32 bucks for bird seed, 180 bucks in BACONBITS!! LOL

It's just the human condition we find ourselves in. To me, dealing with rising costs is a bit of a game. Generally, not everyone raises their price on an item at the same time so a good search can find "yesterdays price". This doesn't work with things like eggs or cookies....so I simply choose not to support gouging. I don't need to, the store is filled with other foods! Food wise, I've always had a classic pallet so this gives me a chance to explore.....a little, weird foods scare me! LOL

None of us know when the clock is going to stop for us.......and Y, you're going to be around longer than you think, cause you have things that you care about, like US! Heck, Bobby was by my side till he was 82 then he retired a year ago to go jet skiing! You strike me as a strong willed, rugged woman who doesn't whine, you aren't going anywhere! You'll just get messier...LOL

I don't disagree with Tom on having a side business as an income stream for many people. I now know why all the folks working at Lowes, are my age or older....a few bucks and something fun to do. I ran a successful fleabay business for a bit by focusing on a nitch and it took very little physical work, mostly shipping small flat rate boxes!

I've always though it was horrible for folks forced into stopping the work that they love., then forced to deal with the downhill financial effects. After working all your life, you shouldn't have to worry about money, period. Just seems like a real crappy deal. Most of my friends who have taken disability have died already, that's just the fact. Kerry knew two of them from my vintage motorcycle group that used to meet up in Ohio each year, both were years younger than me and they died poor and struggling, selling their prized possessions just to make ends meet. A pretty sucky way to go out if you ask me. I was blessed and I know it, that I was never hurt at work. I was warned by an old plumber when I began the trade...."don't get hurt" and I listened, mostly.

So going into retirement,

The cold reality for most of us is simple..................no matter how we plan, we won't have enough to live as well as we do today. Inflation will overtake us. This is a near-certainty for most of us.

So knowing that, do you scrimp today for tomorrow or enjoy today?

I know that it's heresy for my generation, but after raising my family, I choose today..................I can't live by "planning to be happy" , I may be dead by then, especially with all the stupid crap I do!


LOL

One never knows when their tomorrow won't come. So live for today and plan a little for tomorrow.

 

[EricW]

I thought it was cool that W chimed in to remind a nonpolitical discussion that it should remain non-political. The group is being "good" W!
We got this! LOL

Is it interesting, or just predictable that only older folks posted their thoughts in this thread? No young Mom's and Dads though I'm sure we have plenty in our membership.....hmmm. Maybe they're too busy working to make ends meet to take care of their families to respond to frivolous comments.

I'm sorry for your loss Len, I can't imagine. 200 bucks on wild birds/dogs.....what was the split? LOL 32 bucks for bird seed, 180 bucks in BACONBITS!! LOL

It's just the human condition we find ourselves in. To me, dealing with rising costs is a bit of a game. Generally, not everyone raises their price on an item at the same time so a good search can find "yesterdays price". This doesn't work with things like eggs or cookies....so I simply choose not to support gouging. I don't need to, the store is filled with other foods! Food wise, I've always had a classic pallet so this gives me a chance to explore.....a little, weird foods scare me! LOL

None of us know when the clock is going to stop for us.......and Y, you're going to be around longer than you think, cause you have things that you care about, like US! Heck, Bobby was by my side till he was 82 then he retired a year ago to go jet skiing! You strike me as a strong willed, rugged woman who doesn't whine, you aren't going anywhere! You'll just get messier...LOL

I don't disagree with Tom on having a side business as an income stream for many people. I now know why all the folks working at Lowes, are my age or older....a few bucks and something fun to do. I ran a successful fleabay business for a bit by focusing on a nitch and it took very little physical work, mostly shipping small flat rate boxes!

I've always though it was horrible for folks forced into stopping the work that they love., then forced to deal with the downhill financial effects. After working all your life, you shouldn't have to worry about money, period. Just seems like a real crappy deal. Most of my friends who have taken disability have died already, that's just the fact. Kerry knew two of them from my vintage motorcycle group that used to meet up in Ohio each year, both were years younger than me and they died poor and struggling, selling their prized possessions just to make ends meet. A pretty sucky way to go out if you ask me. I was blessed and I know it, that I was never hurt at work. I was warned by an old plumber when I began the trade...."don't get hurt" and I listened, mostly.

So going into retirement,

The cold reality for most of us is simple..................no matter how we plan, we won't have enough to live as well as we do today. Inflation will overtake us. This is a near-certainty for most of us.

So knowing that, do you scrimp today for tomorrow or enjoy today?

I know that it's heresy for my generation, but after raising my family, I choose today..................I can't live by "planning to be happy" , I may be dead by then, especially with all the stupid crap I do!


LOL

While I am not young, I am younger than the "older" folks that posted and I am young as far as a dad. I am in my 40's but have a 10 month old and a 5.5 year old. I usually stay away from any arguments dealing with inflation with many groups as it can get emotional quick much like politics.

Inflation is inevitable and I do not think enough folks understand it. At the end of the day, the more money the collective population spends, the more inflation increases. With inflation, people want salary increases, Social Security increases, etc. However, it just feeds the cycle as the demand keeps up with inflation and it just keeps growing.

Over consumption is a huge contributor to inflation and the USA loves, encourages, and supports over consumption. Social economics, sociology, capitalism, politics, govt. policy, etc. all play into our desire to over consume and our anxiety/stress around inflation and deflation. These are also driving other issues such as climate change, importation of products vs USA made, off shore resources such as labor, etc.

In general we want too much, but need much less. We have large peaks and valley's of inflation and recession. We would benefit from much smaller alternating years of inflation and deflation/recession.

In my opinion too many celebrate getting more money such as stimulus checks. We should be criticizing it. USA sends out $500 million in stimulus checks, it stimulates the economy, which means growth, which means inflation. Then the masses put their hands up in the air and complain. But it's hard to say that people shouldn't get money or raises every year when really, we shouldn't. A 3% average a year increase in salaries to keep up with inflation will just keep inflation at 3% increase every year (all things equal). This leaves those on social security at a loss. In my corporate career, associates will be quite upset if they weren't in the 2-4% salary increase, it is nearly expected. Therefore, inflation is bound to continue to increase 2-4% each year until a correction (recession). Which usually means job loss. When companies are in good times, they tend to over hire and spend like crazy. No different than what most do with their bank account. Then they end up a correction and lay offs ensue.

The only way for one to weather the storm in my opinion is controlled and reserved spending that is even keeled. When I get a bonus, stimulus, tax break, etc., it is saved/invested, not spent on something. I do not know many friends like that. They get money, the first thing they do is spend it. Bam, inflation. Me, I keep my spending month to month the same. If I spend an extra $2k this month, I spend $2k less the next month. You'll "lose" when in inflation and "win" when in recession. I also try not to over consume. Example I have is my house. I bought a house 1/2 the price we could afford. Most will buy the biggest, most expensive house they can afford. I didn't. Philosophy is, if one of us (wife or I) loses our job in a recession, or both of us, we won't lose our house. I lived paycheck to paycheck in my 20's and accumulated a large dept. I spent first part of my 30's getting out of it. We still spend more than we would like to, dragged in by greed and influences to consume more than we need, but we try hard to be conservative. We hold on to vehicles for 12 years or more, we don't buy the newest cell phones, we bought quality furniture that will last us for years, etc. Sure, we don't keep up with the Jones's, but that is fine by us.

I think the scariest thing for me is there is really no secure investment that will guarantee my retirement. Everything pushes you to 401k, savings, and financial investments. All those can come crashing down at any time.

 

[ryan57]

"I think the scariest thing for me is there is really no secure investment that will guarantee my retirement."

Correct. The only sure way through life is to have insurance for the big stuff, no debt, live beneath your means, plan on working until you die and living your life every year as if it's your last. I.E. Don't grow older with a bucketlist if you can chip away at it.

As far as our 6 kids go, the house will belong to the tortoise if all goes well and the kid that wants to live there and take care of Stump gets it. Lol. It is in my will that all of the kids are to be asked what they would like to sell of our assets as the first question. All that express that they would want to sell properties are cut out...

 

[SinLA]

I told my younger friends (I'm odd in that I have a circle of friends 15-25 years younger than I) that one of them is getting the tortoise. They asked if the house comes with him - I said yes, he's a load-bearing tortoise. LOL

 

[Megatron's Mom]

I don't consider myself old. Still in my 40s I'm a stay at home mom, homeschooling the last two, 8-11. We also pretty much take care if my in-laws. You know the saying Tom says about heating a house with no roof. Well that is them. They are both retired from low paying jobs. They did not plan for the future or take care of their house. Once it was paid off the dropped the home owners insurance. The back part of their roof collapsed. Inflammation is hurting them mostly poor planning and my nerves as we have been taking care of them. We have been lucky that I can stay home to raise 6 kids.

Oops I went on a rampage. Anyway, 6 kids to will tortoises too makes it tempting to start a side biz. Luckily for me I raised them to love reptiles and all creatures. So it won't be hard for them to take over. I like the idea of putting it in the will the tortoise goes with the house. I started down this road as I always wanted a turtle or tortoise as a child. I'm originally from Northern Ontario Canada. In the middle of nowhere to boot. So other then wild turtles I had never seen one as a pet. Then my first ever reptile expo I was able to get my first tortoise. That is how I found this page. So many temptations now too.

 

[Cathie G]

Like you I retired at a younger age 51. I had to wait over 10 years for SS to kick in. Today in my 70s things have worked out as planned except for the death of my wife almost 6 years ago. My homeowners and health care insurance costs right at $200 a month. I have great health insurance through the union I joined in 1968. The only out of pocket money is the SS deductible each year. Betty's hospital bill's were over $240,000 and every cent was covered. So I'm ok with those 2 expenses, and I understand what a burden they are for a lot of people. Food prices are way up on some items here but some aren't. Since I buy food just for the pups, the tortoise's and me. I can wait for sales and find reduced items and stock up. Just in the last couple weeks I've bought pork picnic, boston butt and whole hams for $.99 a pound and beef roast for $3.99 a pound. Ground beef $2.99. I use a lot of ground beef because of the many different ways to fix it. Dog and cat food and treats have gone up noticable. I went to Tractor Supply earlier this week and spent $211 on wild bird seed and dog treats. I have 5 dogs

I shop sales too. That's what gets me through. Clearance is how I get clothes so I'm a new rag old bag 😜

 

[Cathie G]

"I think the scariest thing for me is there is really no secure investment that will guarantee my retirement."

Correct. The only sure way through life is to have insurance for the big stuff, no debt, live beneath your means, plan on working until you die and living your life every year as if it's your last. I.E. Don't grow older with a bucketlist if you can chip away at it.

As far as our 6 kids go, the house will belong to the tortoise if all goes well and the kid that wants to live there and take care of Stump gets it. Lol. It is in my will that all of the kids are to be asked what they would like to sell of our assets as the first question. All that express that they would want to sell properties are cut out...

There's a saying about that " the best laid plans of mice and man" Amen.