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  1. #1
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    Seniors Feel Cheated As Inflation Dims Their Golden Years - Zerohedge

    For close to 47 million Americans, it was the best of times, and it was the worst of times. Indeed, the current cost-of-living crisis devastating millions of seniors nationwide has forced many to look back at the choices they made throughout their prime working years.

    Did they save and invest enough? Did they clock in enough hours during their career? Could they have put more money aside for a rainy day?

    The last time inflation was this high, Dennis O’Connor, an 82-year-old retiree from Temecula, California, says he and his peers were able to weather the storm of rising prices. Today, however, they have limited options.

    When the last events occurred 40 years ago, we were employed. The overriding concern is we cannot plan retirement a second time,” he told The Epoch Times. “When you are younger and working you can recover. Retirees will never have that option.”
    . . . Many retirees depend on a fixed income from their pension plans or Social Security checks and their investments and emergency reserves are being imbibed by inflation.

    “Like most of America’s retirees, I am frightened,” O’Connor adds, noting that many seniors have no experience dealing with inflation and recession during retirement.
    . . . According to the Center for Retirement Research at Boston College, Americans lost $1.4 trillion in their 401(k) accounts and an additional $2 trillion in their individual retirement accounts (IRAs) in the first half of this year . . .

    According to estimates from Bloomberg economists, inflation costs have added more than $5,000 a year to the typical family’s budget.
    https://www.zerohedge.com/personal-f...r-golden-years
    Comments:

    I have enough for canned cat food and some varnish for my refrigerator box on Lower Wacker Drive. If I find some change, I can have some Kennel Rations or Alpo as a special treat . . .

    According to John T Reed, the only asset class that is doing well in inflation at 8.2 percent is housing. If you had a $320000 mortgage last month, you just made a 37 percent return on investment as the real dollar value of what you owe dropped . . .

    Wall Street Journal Nicole Friedman’s latest attack on investing in homes. Do not believe your lying eyes . . .

    This is the CoreLogic data. 15.6% appreciation for the 12 months ended July 2022; 13% for the 12 months ended August 2022.

    Another WSJ Nicole Friedman homes are down article today. The lead is buried in the last paragraph. home prices rose 13.9% in the last 12 months. The rest of the article is all “____________ is DOWN! DOWN! DOWN!” Insert various irrelevant statistics like mortgage interest rates, housing starts, units sales—whatever housing related number is less than before is touted, touted, touted as THE story that you should be looking at.
    THE story should be graphs of each investment category for the year to date movement in 2022. That would show stocks, bonds, crypto, gold, you name it, DOWN and home prices, way up. Not gonna be in the WSJ. God only knows why they are doing this.
    And the 8.2% inflation working on your mortgage balance means the REAL mortgage balance will go DOWN from $320,000 to $320,000 x (100% - 8.2%) = $320,000 x 91.8% = $293,760. So your equity will grow from $400,000 - $320,000 = $80,000 to $404,000 - $293,760 = $110,240. That is a $110,240 - $80,000 = $30,240 /$80,000 = 37.8% return on investment!
    https://johntreed.com/blogs/john-t-r...ent-investment

  2. #2
    Senior Member mgtower's Avatar
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    Re: Seniors Feel Cheated As Inflation Dims Their Golden Years - Zerohedge

    Bundle up, boys, it's gonna be a long cold endless winter.


  3. #3
    Senior Member Chris007's Avatar
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    Re: Seniors Feel Cheated As Inflation Dims Their Golden Years - Zerohedge

    I have some good dog recipes.


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