floridacatlover wrote: ↑Thu May 06, 2021 8:12 pm
As inflation takes hold, interest rates will rise and your money will be earning more. Sounds strange but my parents were very risk averse and mom always said they made the most money during the 1970s inflation. Cleaning out with her before she died we came across old CDs that paid 14%. I saw it with my own eyes. Of course they were lucky, like you and I are now, and did not have a mortgage.
During high inflation, the ones hurt are the borrowers, not savers. I remember my old boss (favorite boss throughout my career) buying a home in 1980-81 in the Maryland suburbs and his mortgage interest rate was 18%. Yikes!
Yes, food cost are of course negatively impacted by inflation. That is probably where we will first see inflation.
Janet Yellen was head of the Fed but she is now Sec. of the Treasury.
I do think that we are going to see inflation, just not hyperinflation. All the federal spending right now is going to create a hot economy right now, I believe. Because of that I moved some cash back into the market a few weeks ago. My thought is leave it there for the next year or so and then move back to cash. Big thing is that although I wouldn’t want to lose the money if the market crashed, I could afford it and life would go on.
YES! THAT is TRUE! I remember the days of higher interest rates! I particularly remember an elderly woman that had her hair slicked back into a tight bun and wore the same gray sweater and dress like a librarian or old school marm type and she had lots of money in her accounts! She was loaded BUT one day as I was on my way to work on the bus I saw her digging through the trash in front of a store, but I knew she was rich! I was a teller back then and no money at that point, but I was thinking hmmm,maybe that is why she has all this money lol! Being frugal!
You speak prudently and sounds like you made wise decisions and pretty well off! My goal is to be a millionaire (at the very least). It was touch and go for awhile there just wondering if we would even make it to have something incoming even. THAT made me even more conservative and save even more-I can save anywhere from 34-over 54%(based on the last few months from Jan records). There have been months last year I can save up to 75% even. However, it all looks good on paper my assets, but most of these things are all tied up and cannot touch unless I sell which like a house I need shelter so I won't. I just want to make sure I will be set up in the event he dies first(he is 10 years older than I am) and I can live off a smaller income and support the last two kids. Although my 16 yo son is doing well in his own business and said he could support me-lol! If he keeps it up, yes he could-he told me not to worry he will take care of me and kissed me! My other kids told me they would take care of me too if I ever needed them, but you know you never want to burden the kids or have to rely on them with their own lives going on.
So I am not poor, but again do live a poor lifestyle just bc I am frugal and there is nothing I need or want and I just spend a little. I just don't want to waste my money and like I said to my husband most people would spend what we got already and we can't even decide what to do with it except we want it to last as long as possible bc we know that is all we will be getting ever again. The lawyers even asked what we would do with our money, and all I could blurt out automatically was to "Save it!" I told him most would have spent it already(and so easily given the amount) and we are just holding onto it tightly and still frugal!!!
It really was not that much considering what we lost and what we went through(piddly really-it was sad) just bc we settled unfortunately, but my dh had it and just wanted to be left alone and not go to court to fight it out. WE waited that long so who knows how long going to court would have taken!? He just wants to go back home where he grew up to visit once. He hasn't been back in 50 years ever since he came here and wants to see it before he dies he says and visit a couple of family members still left (rest died before he could get there).
He had the other night an electric shock to his heart area that jolted him out of bed so he will have to do another stress test now. So I hope he will be able to go one day! And we have never traveled out of the US, so I would like one day to go on a trip to Italy and Greece (I don't know why but I have some morbid curiosity to want to visit Pompeii!? Also the Sistine Chapel and Colisseum and the Parthenon!). Then I am good-only thing on my bucket list-I can't think of anything else rn?! But my dh's knees are bad now too (can't operate til after a year of his stents due to blood thinners) so he thinks we may not be able to go anywhere bc he wouldn't be even able to walk, so who knows we may not even be able to go travel either-sigh!