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> Depending on your living cost around 1% guaranteed return should be enough to not work again for quita a while, possibly for ever Just a nitpick but even the
by mtgx 8y ago
> Depending on your living cost around 1% guaranteed return should be enough to not work again for quita a while, possibly for ever
Just a nitpick but even the "official" inflation rate is somewhere around 2%, is it not? The real one is probably 3% or higher.
- soVeryTired 8y agoInflation is just an aggregate, based on a reasonably arbitrary basket of goods that someone decided is representative of the public's expenditure. If the basket doesn't reflect your consumption, then the rate of inflation isn't really relevant to you. Almost all PCE inflation in the last 20 years has come from housing, healthcare, education, and pharmaceuticals. On the other hand, the price of durable goods has fallen. The idea that inflation moves all prices together hasn't been accurate since the 80's. The trick is to figure out what your liabilities are, how you might be affected by the price of X changing, and invest accordingly to attempt to hedge that risk.
- kaybe 8y agoI think there also should be a concept of 'personal inflation'. For example, if you consume a lot of electronics and only use little petrol or whatever is becoming more expensive that time, your personal exposure to inflation is lower than the official number.