Unpleasant thought- but reality

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I feel bad for the guys that are retired. All the money they saved, the pension, the 401k; none of it adjusts with inflation. If you were able to save a million dollars after you retired in 1990 it’s value is about half of what it was then. “$1,000,000 in 1990 is equivalent in purchasing power to about $2,151,094.11 today, an increase of $1,151,094.11 over 32 years. The dollar had an average inflation rate of 2.42% per year between 1990 and today, producing a cumulative price increase of 115.11%.” 


Only way to hedge against inflation is investing. Money is just a tool, never save it
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you are correct
 
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I am 66 years old and "retired". My wife is 4 years younger and owns a small business in which I help her with some menial tasks. Our strategy is simple: we will keep working to some extent, as long as we are physically able. It's the only way, unless extremely wealthy to avoid a huge step down in lifestyle when inflation constantly eats away at one's savings, none of which will matter when serious medical issues arise, and all the money will be gone.
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Well...not so much.

I'm FAR from wealthy. I just managed to get my 401K reasonably up there, and have a good pension package from work. When I retired 3-1/2 or so years or so ago, I was thinking much like you, I'll be living as a pauper. As it turns out, with my monthly pension and government check...then add all of the things that I'm NOT...spending money on, gas, oil, motorcycle tires, chains, brake pads, etc., etc., two meals a day at work, plus dinner at home... I'm actually doing MUCH better than I ever figured that I would. Oh yeah, I had enough in my saving account to pay off my house too. Getting rid of THAT monthly payment really helps.

This air gun hobby is brand new to me since my retirement. I would have NEVER, been able to buy the guns and equipment that I currently own while I was working !

So yeah, In my case, with my own money (as paid monthly) and the couple of the government stimulus checks, I'm doing pretty well.

Now just to stay healthy as long as possible.

Mike
 
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Very nice @mikevv! Sadly most people are retiring without pension and many did not have the opportunity to participate in investment/401k. Yes, the tools are there like IRA or just open an E*trade account but not everyone has the knowledge to do so. Just hope most members here are as fortunate and wise as you. One day I hope to retire like you. 
 
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Mike that’s a good point you made about health. Reminds me of a guy we use to call Greek the freak. He lived a life most can only dream of. High end luxury cars, mint classic muscle cars, 2 million dollar vacation home on santerini, beautiful women, yada yada. Only problem was, he was laid up in the hospital; bedridden at 57 years old. All the material things he accumulated meant NOTHING. True wealth is health. More often than not, we neglect our health in the pursuit of wealth. Only to spend that wealth later in life to try and regain health. Point is, exercise 10 mins a day, eat healthy and live out your years being able to enjoy the things you love in life.
 
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Mike that’s a good point you made about health. Reminds me of a guy we use to call Greek the freak. He lived a life most can only dream of. High end luxury cars, mint classic muscle cars, 2 million dollar vacation home on santerini, beautiful women, yada yada. Only problem was, he was laid up in the hospital; bedridden at 57 years old. All the material things he accumulated meant NOTHING. True wealth is health. More often than not, we neglect our health in the pursuit of wealth. Only to spend that wealth later in life to try and regain health. Point is, exercise 10 mins a day, eat healthy and live out your years being able to enjoy the things you love in life.
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And don't forget to drink your cherry juice!
 
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Only to spend that wealth later in life to try and regain health. Point is, exercise 10 mins a day, eat healthy and live out your years being able to enjoy the things you love in life.
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+1

And as I'm cruising into the 50's, the expression "time is money" as acquired a different meaning. As in, time with loved ones doing things are love... is worth its weight in gold.
 
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Let’s put it this way… I’m buying everything I want and need now.. food.. water filters.. air guns.. swaging equiptment and supplies… welding supplies… tools for my business… fuel for my race car…



Wife is buying ammo and the guns she wants… 



We were huge savers. But with the rate of inflation, saving is only a loss at this point... 



Air guns are getting hugely popular.. not only are they cheap to shoot.. but they are unregulated and unregistered.. don’t require brass, powder, primers, etc. and the crazier poop gets the higher the demand gets. I go to the range with my Impact and usually within 20 minutes I’m surrounded by people floored by the groups and interested in the rifle. 


Some people call airguns a hobby.. but in a SHTF situation… air guns are a perfect solution to many problems. 
 
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The solution for me is to be satisfied with what I already own. A new gun would certainly be nice, but honestly, I doubt that any gun will make a huge difference in my shooting skills. As for the necessities of life, I have no choice but to pay the going rate.

I'm old enough to remember Nixon's price and wage freeze attempting to control inflation. It seemed to work at first but later was blamed for the period of stagflation that followed.
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Under Jimmy Carter. Yes they did blame Nixon for that. It was a mess. Jimmy had 4 years to fix it. He turned out to be as feckless as Brandon.


 
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