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the problem with living on a fixed income is some big unexpected inflationary event. This happened to my parents in the 70s. They retired in the early 70s and
by fnord77 9y ago
the problem with living on a fixed income is some big unexpected inflationary event.
This happened to my parents in the 70s. They retired in the early 70s and then BOOM inflation went nuts and what was a comfortable retirement turned into subsistence.
doesn't seem likely anytime soon, but it is still a risk.
- tabeth 9y agoI don't see why this would be an issue, as you still have the principal, and such events can be amortized into the adjusted "income" you pay yourself out with.
- AstralStorm 9y agoBecause say you remain with say 40k/y (instead of 80k/y) of value in the principal in addition to reduced compounding.