For anyone planning on leaving this year, what is your strategy to survive the hyperinflation our wonderful gooberment has established?
How can people in our situation deal with this quickly?
I clearly see all my costs rising much greater than the gooberment's CPI. And we are not gooberment employees with fat pensions that get bumped up every yesr.
You stay ahead by reducing debt and creating a balanced portfolio of stocks and bonds. The S&P 500 has increased an average of 6.8% every year since 1926 (including the 1929 crash). That keeps you ahead of inflation. However, if retired, you also need income and that comes from bonds. And one method of figuring out how much to put into stocks and bonds is done by subtracting your age from 100 to determine the percentage of stocks to hold, and the rest goes in bonds. So when you're 30, hold 70% stocks and 30% bonds. At 60, hold 40% stocks and 60% bonds.
check out James Rickards books on how to preserve your wealth.
per him you can only have inflation if the velocity of the money is sufficient.
I made the decision years ago to be out of debt as soon as possible. When others were buying cars, boats, vacation homes I put in on my primary residence and paid the house off. It is surprising what little you can live on with no debt. I also saved at least 6% in 401k...sometimes up to 10%.---such a smart man, doesn't include the lake house you ripped off for seven years.
At&T has done so well taking care of you - pay, benefits, pension, 401k - hyperinflation isn't even real issue for you. It's just something you complain about when you run our of other things to complain about.
Take your pension lump sum and invest it in the stock market, along with your 401k, Roth IRA, and other investment accounts that you should have been contributing to for years. Put a small amount amount in something "safe" if it makes you feel better, but it in the long run, the stock market always increases and should outpace inflation.
The economy is cyclical. Always has been. Stop with the drama.
I'm MR 75. 5 or so years ago, when these surplus events became a regular thing...it dawned on me that debt was a bad idea. Credit card debt, car loan debt, etc. I made it a point to rid myself of it and not carry any moving forward. I don't quite have the mortgage paid off, but that's now the priority and I am under 50K to go. I've got 1 million in the 401K and cash value of the pension is over 200K (and I'll be taking the lump for sure). When the hammer falls, I will be in a pretty good position, all things considered. I could easily have had closer to 2 million in the 401K had I not been foolish in my youth, taking a couple loans along the way and not always contributing as I should have been. That's my advice to you youngsters, start early with those contributions and be consistent. And don't take any loans from your 401K if at all possible.
"If you are receiving a "T" pension, good luck. You will NEVER SEE A COST OF LIVING RAISE! NEVER. EVER. PERIOD.
Enjoy your occupational $16,000 pension, your $19,000 1st level pension, your $23,000 2nd level pension...........etc for the rest of your life.
Handy Randy and Big Ed then the Stinker will sleep good at night knowing that their multi-million golden parachute and quarter million per mo. pensions are enough to continue their lifestyles while saving $$$$ for the Great, Great, Great, Great x10 Grandkids.
Cheers."
3 hours ago by Anonymous | 5 reactions (+2/-3)
Post ID: @ncb+1aN3TBGY
This is funny. My lump, added to my 401K, added to my wife's AT&T pension, and both our SS, allow us to live better than we did working. If your pension is that low, you have made some bad decisions.
Cheers.
Sitting around with nothing to do and you manage to come up with another way spew negativity and hate of the company that is taking care of its workers. Like a cancer trying to spread.
"One example of hyperinflation....."
Wrong.
It's an example of demand outpacing supply, it's that simple.
One example of hyperinflation, building supplies, a 2x4 is $10 as compared to $3 in Jan 2021, A 4x8 sheet of plywood is $100, as compared to $30 in Jan 2021. I hope you are not planning ant remodeling or new construction anytime soon!
Although I am already retired, I have not taken my pension as I am still working. For me, the lump sum will most likely match or beat inflation every year. The annuity stays the same. If you take the lump sum, conservatively invest it and keep risks low. Do not gamble it.
"Not sure where you are seeing hyperinflation."
In their fox news/facebook fever dream.
Not sure where you are seeing hyperinflation. The Fed is not too concerned this morning. They would like to see better employment numbers. Some of us just quit buying.
Hyperinflation is rapidly rising inflation, typically measuring more than 50% per month. I'm not concerned about current and reasonably foreseeable levels of inflation.
I made the decision years ago to be out of debt as soon as possible. When others were buying cars, boats, vacation homes I put in on my primary residence and paid the house off. It is surprising what little you can live on with no debt. I also saved at least 6% in 401k...sometimes up to 10%.
If you are receiving a "T" pension, good luck. You will NEVER SEE A COST OF LIVING RAISE! NEVER. EVER. PERIOD.
Enjoy your occupational $16,000 pension, your $19,000 1st level pension, your $23,000 2nd level pension...........etc for the rest of your life.
Handy Randy and Big Ed then the Stinker will sleep good at night knowing that their multi-million golden parachute and quarter million per mo. pensions are enough to continue their lifestyles while saving $$$$ for the Great, Great, Great, Great x10 Grandkids.
Cheers.