Please explain how to keep up with a fricking 7.9% inflation rate...

Invest in yourself to make sure demand for your skills is high. Reduce taxes as much as possible. Maybe look into dual citizenship.

ElCubano said:
Consume less.
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No, consume more today while it’s “cheaper” than consuming tomorrow!
 
Maybe buy some land..create a co-op...grow your own food...save the earth....be at peace with nature and neighbors....the 60's hippi mantra doesn't sound too bad.
 
No one has suggested working 8% extra hours in your day job (more hours if it pushes you into higher tax band)

Or a second job if you cant get extra hours in your main one.

ET must be full of lazy work-shy slobs :D
 
Millionaire said:
No one has suggested working 8% extra hours in your day job (more hours if it pushes you into higher tax band)

Or a second job if you cant get extra hours in your main one.

ET must be full of lazy work-shy slobs :D
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Funny you brought up a great point that inflation as wages catch up which is the lagging factor, but when they do they force people into a higher tax bracket. So not only is there purchasing power lower but now they're taxed at a higher rate..
 
Lots of people. Say consume less. I say F*ck that. I’m retired. I didn’t retire to watch my pennies.
When Covid hit I picked up a bunch of bonds for my bond allocation(most of my $ is long term money, and asset allocated) at very good rates. A lot of them have matured, and I’m awash in cash. Yesterday I invested about 20% of that cash in a 5 year bond ladder with a 3.2% yield (first maturity 2024).
And it struck me, here I am happy to get 3%, but inflation is 8%. But for my bond money, there’s nothing better without taking risks that aren’t appropriate for that bucket of money.

which led me to think (reaffirm) that the only way to beat inflation is to invest in equities. Period.
 
kmiklas said:
- A 3% raise at work is typical--if you're lucky.
- 10yT is paying 2.4%
- To consistently pull 8% out of the equities market qualifies you as a fund manager

Just to tread water, you have to take a lot of risk. 9% just to get ahead by 1%? Maybe junk bonds? Again... the risk. Do drug dealers issue bonds?

They flooded the system with USD, and in the process, are making us all poor!
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Bear in mind that equities will get annihilated if the market perceives that high inflation is here to stay, and especially if the Fed takes rates all the way up to 4-5% or more. This hasn't happened yet both because the Fed has kept real rates deeply negative, and because the market expects inflation back at pre-covid levels in just 1-2 years.

The best way to profit from high inflation is to buy real estate on leverage. Six months ago you could get a mortgage for 2.5-3%, invest in prime blue-chip rental property yielding 6%, and watch the real value of your loan deflate by 10% annually.
 
Life and economics is like a pendulum. We currently swung to an extreme in commodity prices, property prices, equities. Normalization can take a lot longer than most people think. But it eventually will move to an equilibrium and then to the other extreme. Key is to adjust and be flexible. Spend less, shift consumption away from buying garbage and above all, be positive minded and enjoy what you have. We have it better than 90% of the rest of the world and yet we constantly bitch and complain.
 
I remember when people like me were called "conspiracy theorists" for warning about damn near exponential inflation a couple of years ago. All of the retards, including on here, who get all of their information from the TV said that the man on the TV told them that inflation fears are unfounded.
 
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