Inflation up 8.3% in August

[Rainger99]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

[frose]

that means another 3/4 to 1% raise in the fed..

[Stu from NYC]

Interest rates will continue to rise and at some point housing prices will be down sharply

[Two Bills]

UK Inflation Rate is at 10.10%, compared to 9.40% last month.
Not doing so well here in UK.
Only upside for wife and I is, we have a goodly sum in a tax free Government Cash Bond linked to inflation rate.
Doing nicely thank you very much!

[retiredguy123]

Interest rates are too low. They need to be raised faster.

[dewilson58]

Lots of "kids" ran out and spent $10,000............fueling demand, increasing prices.

:evil6:

[Caymus]

Lots of "kids" ran out and spent $10,000............fueling demand, increasing prices.

:evil6:

Some of them spent $20,000

[Tvflguy]

For those who may have spare money to invest, check into iBonds. Max is $10k per individual. 9.2% interest annually for next six months. Gvt re evaluates interest every six months. A solid investment and
way to safely park $10k per person with very good return.

Google I bond for details. Only individuals can purchase thru US Treasury Direct Website.

[Michael G.]

High interest return is finally showing come back and nice to see.

I just wish we could accumulate some interest without the taxes.

[tophcfa]

Oil/gas goes up, everything else goes up. Oil/gas comes back down, everything else stays up. It’s a very dangerous game playing with the price of oil/gas.

[Michael G.]

Oil/gas comes back down, everything else stays up.

Yes I understand when oil/gas is high, so go the prices to do business, but were do the extra profits go after the drop in oil/gas?

[ThirdOfFive]

Yes I understand when oil/gas is high, so go the prices to do business, but were do the extra profits go after the drop in oil/gas?
Wife and I were shopping yesterday...saw 18 eggs selling for $3.50something or other. My comment: "eggs are coming DOWN in price!!"

Are the hens holding out for better prices?

[Kenswing]

The market sure didn’t care much for that data.

[dewilson58]

The market sure didn’t care much for that data.

Emotion.......costly, but emotion.

[Babubhat]

Yet 16 minutes ago There was tweet saying how well things are going. No mention of the market crashing

[DAVES]

Emotion.......costly, but emotion.

What to do, that is the question. Buy stocks on the sell off? Regret I shoulda, coulda mighta. Inflation, CPI, consumer price index is the evaporation of REAL net worth

[Babubhat]

What to do, that is the question. Buy stocks on the sell off? Regret I shoulda, coulda mighta. Inflation, CPI, consumer price index is the evaporation of REAL net worth

Those million dollar homes for sale going to feel pain. So many asking 30 percent more than 2 years ago

[DAVES]

Interest rates are too low. They need to be raised faster.

I am glad it is not my decision to make. Our national debt is, close enough to claimed reality 33 TRILLION DOLLARS. To few realize that they do not comprehend one Trillion let alone 33 of them. I recall reading somewhere, rates were lower than today, the interest on the national debt was then one and a half BILLION A DAY. Back to my original point I see clearly that I do not REALLY comprehend 1.5 BILLION either.

Not an interest rate hike but a belief the Fed will raise interest rates because of the inflation they have caused. The stock market lost, I've not yet looked 3-4%. That is SAVINGS, retirement funds even a pension is funded in the stock market.

It is wealth, all savings is wealth, simply evaporating.

[Stu from NYC]

Wife and I were shopping yesterday...saw 18 eggs selling for $3.50something or other. My comment: "eggs are coming DOWN in price!!"

Are the hens holding out for better prices?

The hen union has struck for shorter working hours

[DAVES]

Yet 16 minutes ago There was tweet saying how well things are going. No mention of the market crashing

We tend to live in a fiction. Imagine a tweet, a news story. Things are terrible. It will be worse tomorrow. It is a self fulfilling prophecy. We regularly read about the magic of compounding and investing growth. Math is math, spin is spin, LOSES also COMPOUND

[Stu from NYC]

Yes I understand when oil/gas is high, so go the prices to do business, but were do the extra profits go after the drop in oil/gas?

In the words of that great English economist John Maynard Keynes prices are sticky downward.

My favorite quote of his is "aint no free lunch".

[DAVES]

Those million dollar homes for sale going to feel pain. So many asking 30 percent more than 2 years ago

It depends on YOUR current position. I am neither looking to sell my home or to buy another. When we bought TEN YEARS AGO, I bought a place to LIVE IN.
I never expected it to go up as much as it did. That does not mean I would sell it cheap. Some focus on their own issues, goals. Perhaps, we all do. Hind sight is always 20-20. I SHOULDA COULDA MIGHTA.

Million dollar homes? A million just is not what it once was. I recall a TV show, The Millionaire. The plot was a philanthropist would anonymously give deserving people a million bucks and they were set for life.

There is an investment guide that says you can withdraw from savings 4% a year and never run out of money. All of these things are guides. If, wrong all you will get is OOPS. In any case 4% of a million is 40,000.

[DAVES]

THE MATH
I just looked 9/13/22 market has closed. The S&P is down 4.32.

Assuming you had 10,000in an S&P index fund, a commonly used number for explanation.
10,000-4.32%=9568 9568+5%=10046. What you need to be whole

[dewilson58]

[QUOTE=DAVES;2136295]What to do, that is the question. Buy stocks on the sell off? /QUOTE]

Yep, drive into it.

[CoachKandSportsguy]

THE MATH
I just looked 9/13/22 market has closed. The S&P is down 4.32.

Assuming you had 10,000in an S&P index fund, a commonly used number for explanation.
10,000-4.32%=9568 9568+5%=10046. What you need to be whole

Except that the market is still higher than 9/6, 7 day ago? so in reality, you only lost the prior 4 days of gain, so in reality just really close points in time of a bunch of ups and down in that example. so in reality, its all about how far down you are from the peak, where you should have been 0 % invested in equity

which is why you buy low and sell some or all when you have lots more than say 20% annual gain in any equity. . . that way you keep your gains, and money compounds very well at 20%

stock market candles guy

[CoachKandSportsguy]

Graphic won't load. . as small as it can be made. .

[ronwinger]

I have a family member (not really sure what she does) that works somewhere within the the business of home loans. She tells me the country is back where it was in '08/'09. I said it does not show that around this part of the country. Her answer was... the loan circle that she is affiliated with on the norm processes 15,000 loans a month. In the month of August, they worked 900 loans. Not to mention.. the industry/business she deals with have laid off many and some went belly up. I do believe we will not see the true colors of this until after the November Elections. We all know that the bubble has to break. They can not keep giving loans to folks with a pulse for homes that are listed and selling for who the hell knows what. We have never seen the price of real estate go as high has it has in the past couple of years. The sales of today will probably never reach that level again so how will these buyers ever re-coupe? I like many of us can sell and make a nice buck but.... then we will buy less for more. something Got to Give. Anyway, I thought I would add my two cents.

[La lamy]

High interest return is finally showing come back and nice to see.

I just wish we could accumulate some interest without the taxes.

I felt the same and asked the Canadian government's Financial Minister to give us a way to save money without it being taxed and it lead to Canadians getting TFSA accounts (Tax Free Savings Account). We can invest up to $6000 per year whichever way we prefer, i.e. cash, bonds, stocks etc... and the interest isn't taxed. When some money is taken out (tax free), that extra amount can be reinvested at a later date since the yearly maximum is accumulative, no matter how much you put in any given year. Along with our RRSP accounts which is a deferred tax account, we have great ways to manage our cash in Canada.

[CoachKandSportsguy]

Real rates are at -6.7%, Volcker stopped raising rates when real rates reached +10%. This +1670 bps point away. 🤭🤭🤭

[Stu from NYC]

Except that the market is still higher than 9/6, 7 day ago? so in reality, you only lost the prior 4 days of gain, so in reality just really close points in time of a bunch of ups and down in that example. so in reality, its all about how far down you are from the peak, where you should have been 0 % invested in equity

which is why you buy low and sell some or all when you have lots more than say 20% annual gain in any equity. . . that way you keep your gains, and money compounds very well at 20%

stock market candles guy

Would be great if we could time the market but the reality is you cannot do it in the long run. You seem to have timed it this time but over the long run doubt you can but good luck to you.

The real trick to you now is when do you get back in?

[CoachKandSportsguy]

stu, can you see the P/E graph I uploaded on post #29? its not a big picture,

[rsmurano]

It will get much worse. Businesses making profits? Businesses aren’t making profits, and this is 1 of the reasons we have inflation. You have congress trying to force everybody to make $15-$20 an hour for a job a robot can do. You have congress forcing more taxes on businesses because congress is on a worthless spending spree. You have high costs for shipping (diesel is still $5 a gallon). Businesses will pass on all of these new costs and add to their price of their goods. You think Burger King and McDonald’s can still afford to all a $1 hamburger when they have to pay 2x the salaries than 18 months ago? Now, you will see businesses and corporations start laying people off. You will see gas rise again, rents going up, interest rates are over 6% now, soon to be close to 7% or higher.

[dewilson58]

stu, can you see the P/E graph I uploaded on post #29? its not a big picture,

I ain't from NY (thank God), but I can not see your chart.

[RiderOnTheStorm]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

Without wishing to make matters seem worse, you could think of an 8.3% level of inflation as the need to work one month out of the year for no income. Kinda puts things into perspective.

[Wilharm]

My Father always said "it's not a problem if you don't eat or drive".

[rustyp]

Except that the market is still higher than 9/6, 7 day ago? so in reality, you only lost the prior 4 days of gain, so in reality just really close points in time of a bunch of ups and down in that example. so in reality, its all about how far down you are from the peak, where you should have been 0 % invested in equity

which is why you buy low and sell some or all when you have lots more than say 20% annual gain in any equity. . . that way you keep your gains, and money compounds very well at 20%

stock market candles guy

And likewise the market is down greater than 10% from exactly one year ago. Now add to the loss 8-9% inflation rate and the hole is beginning to develop an echo.

[MandoMan]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

Just so people understand, that does NOT mean that prices increased another 8.3% in August. It means the rate of inflation for the total year so far (!) DECREASED from 8.5% to 8.3%. For the total for EIGHT MONTHS to drop 0.2%, prices in August had to drop approximately that amount times eight, or 1.6%. The Federal Reserve Bank had hoped that raising interest rates last month would cause even more of a decline, but it hasn’t yet. Meanwhile, gas prices are back to where they were from 2011-2015, just before a gas glut lowered prices so much that lots of oil wells were closed and fracking decreased a lot. That was an unusual situation, and while it was good for us, it was not good for oil companies.

[golfing eagles]

Just so people understand, that does NOT mean that prices increased another 8.3% in August. It means the rate of inflation for the total year so far (!) DECREASED from 8.5% to 8.3%. For the total for EIGHT MONTHS to drop 0.2%, prices in August had to drop approximately that amount times eight, or 1.6%. The Federal Reserve Bank had hoped that raising interest rates last month would cause even more of a decline, but it hasn’t yet. Meanwhile, gas prices are back to where they were from 2011-2015, just before a gas glut lowered prices so much that lots of oil wells were closed and fracking decreased a lot. That was an unusual situation, and while it was good for us, it was not good for oil companies.

Not quite.

The CPI was expected to drop by 0.1%, but instead rose by 0.1%. Sounds like a minimal change, but enough to drop the Dow by 1300.

[CoachKandSportsguy]

With oil declining from peak, there will be less inflation pressure on goods, however, labor inflation lags goods / rent inflation and now we are seeing the effects of labor inflation, and the only way to reduce labor inflation is to reduce job growth, which when due to a pandemic and those in their 60's retiring early, results in a labor shortage, means that the Fed may have to follow the Volker formula, and many are betting that won't happen. . .

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc

[Rainger99]

I felt the same and asked the Canadian government's Financial Minister to give us a way to save money without it being taxed and it lead to Canadians getting TFSA accounts (Tax Free Savings Account). We can invest up to $6000 per year whichever way we prefer, i.e. cash, bonds, stocks etc... and the interest isn't taxed. When some money is taken out (tax free), that extra amount can be reinvested at a later date since the yearly maximum is accumulative, no matter how much you put in any given year. Along with our RRSP accounts which is a deferred tax account, we have great ways to manage our cash in Canada.

What have interest rates been in Canada the past 10 years??

If you can only invest $6000, even at 5% interest (haven’t seen that high a rate in years), you would only get $300.

And is that just interest that is tax free or is it capital gains and dividends?

[Catalina36]

High interest return is finally showing come back and nice to see.

I just wish we could accumulate some interest without the taxes.

CHECK OUT symbol "IIM" Invesco Value Municpal Income, paying 5.1% federal tax free

[villager7591]

You're penalized for good, successful decisions in our country.

[mrf0151]

With oil declining from peak, there will be less inflation pressure on goods, however, labor inflation lags goods / rent inflation and now we are seeing the effects of labor inflation, and the only way to reduce labor inflation is to reduce job growth, which when due to a pandemic and those in their 60's retiring early, results in a labor shortage, means that the Fed may have to follow the Volker formula, and many are betting that won't happen. . .

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc
Houses do produce income. Remember some of us have own rental properties. All part of the retirement income portfolio.

[Caymus]

Without wishing to make matters seem worse, you could think of an 8.3% level of inflation as the need to work one month out of the year for no income. Kinda puts things into perspective.


Plus, the 4 to 5 months needed just to pay taxes.

[Blueblaze]

I would agree that real inflation is higher more like 15% or so. Do think that the higher interest rates will reduce economic activity most likely a recession that will help to end inflation or at least bring it back to more tolerable numbers

OK, I'll play. Name something that's only up 15%.

Will raising rates end inflation? That's the only thing the FED is willing to do, but that's not the real solution. The real solution is to STOP PRINTING FAKE MONEY. In fact, in the history of the world, the only thing that's ever solved 50% inflation is to ISSUE A NEW CURRENCY and then DON'T INFLATE IT.

Yes, raising the rate the FED charges banks for their fake money, discourages banks from taking it, but not enough to convince them to quit paying the FED and start paying YOU. THAT would allow a real "soft landing", by attracting REAL INVESTMENT. Or, at least it would, if inflation wasn't already at these astronomic levels. At this point, I don't see any solution.

Mortgage rates are now over 6%. Is your savings account making any more than it was a year ago? There's your clue. For the 100 years prior to the 2008 crash, when Obama effectively nationalized the banking system, you could get 4.25% in any passbook savings account, through inflation, depression, recession, and what-have you. The banks WANTED and NEEDED your money. Now they don't. How do we recover from a banking system that doesn't want investment from the real economy?

[OhioBuckeye]

Do you have any idea’s why it’s so high?

[Stu from NYC]

OK, I'll play. Name something that's only up 15%.

Will raising rates end inflation? That's the only thing the FED is willing to do, but that's not the real solution. The real solution is to STOP PRINTING FAKE MONEY. In fact, in the history of the world, the only thing that's ever solved 50% inflation is to ISSUE A NEW CURRENCY and then DON'T INFLATE IT.

Yes, raising the rate the FED charges banks for their fake money, discourages banks from taking it, but not enough to convince them to quit paying the FED and start paying YOU. THAT would allow a real "soft landing", by attracting REAL INVESTMENT. Or, at least it would, if inflation wasn't already at these astronomic levels. At this point, I don't see any solution.

Mortgage rates are now over 6%. Is your savings account making any more than it was a year ago? There's your clue. For the 100 years prior to the 2008 crash, when Obama effectively nationalized the banking system, you could get 4.25% in any passbook savings account, through inflation, depression, recession, and what-have you. The banks WANTED and NEEDED your money. Now they don't. How do we recover from a banking system that doesn't want investment from the real economy?

Agree 100%. The fed is doing what it can to stop inflation. The real culprit is just adding fuel to the fire

[Sherry8bal]

They'll say anything to make things look better when it definitely isn't. Food and gas are the major expenditures for most families.

[rsmurano]

Not true, it’s year over year not just 8 months. Actually the inflation is much worse month over month, I heard it’s over 11%. Gas was low years ago because we let the companies drill, we were an exporter of oil, compared to now which we are dependent on our enemies to drill oil for us. Gas is down now because we are depleting our national reserves which we shouldn’t be doing.
The reason why the market tanked yesterday was because they were looking for a bigger drop in inflation and it was higher than anticipated, and that’s after the federal reserve started raising rates. This month the federal reserve is going to start selling $90b of assets which will start to have a negative aspect to the economy.
I heard from an ex federal reserve member on TV that the only way to get inflation down is to have interest rates at the same level as inflation. If they raise rates .75-1%, we will be in a deeper recession

[Rainger99]

The good news is that Social Security recipients may receive an 8.7% cost-of-living adjustment next year. That would be the largest increase since 1982!

The average recipient will receive about $144 a month extra! Now we can all go to Sawgrass!

[golfing eagles]

You would have to be able to think first.

I do so hope that was a general statement and not directed at me, I'd hate to have to leave the Village of Stu:1rotfl::1rotfl::1rotfl:

[Stu from NYC]

I do so hope that was a general statement and not directed at me, I'd hate to have to leave the Village of Stu:1rotfl::1rotfl::1rotfl:

It was not directed at you at all. As long as rent is paid on time you are still a resident and entitled to all the amenities we have to offer that we have not yet taken away.

[golfing eagles]

It was not directed at you at all. As long as rent is paid on time you are still a resident and entitled to all the amenities we have to offer that we have not yet taken away.

But should I spend hours and hours comparing my amenity fee to my neighbors then whine about a $2.98 difference?????:1rotfl::1rotfl::1rotfl:

[La lamy]

What have interest rates been in Canada the past 10 years??

If you can only invest $6000, even at 5% interest (haven’t seen that high a rate in years), you would only get $300.

And is that just interest that is tax free or is it capital gains and dividends?

Canada's interest rates are very similar to US. ALL interest accrued in whichever way you choose (including dividends and capital gains) are tax free in a TFSA. $6000 a year can add up and make a difference, but we also have RRSP vehicles that are a tax deductible vehicle. Google it for more info if you wish.

[Stu from NYC]

But should I spend hours and hours comparing my amenity fee to my neighbors then whine about a $2.98 difference?????:1rotfl::1rotfl::1rotfl:

Maybe not hours and hours but perhaps you should spend a little time. Can we compromise at 5 minutes once a week?

[golfing eagles]

Maybe not hours and hours but perhaps you should spend a little time. Can we compromise at 5 minutes once a week?

59.6 cents/minute/week? Probably a bit overpriced for that nonsense:1rotfl::1rotfl::1rotfl:

[melpetezrinski]

With oil declining from peak, there will be less inflation pressure on goods, however, labor inflation lags goods / rent inflation and now we are seeing the effects of labor inflation, and the only way to reduce labor inflation is to reduce job growth, which when due to a pandemic and those in their 60's retiring early, results in a labor shortage, means that the Fed may have to follow the Volker formula, and many are betting that won't happen. . .

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc

An investment must generate revenue and can't have expenses? So, a technology ETF that generally doesn't pay dividends and has an expense ratio is NOT an investment? I can certainly understand the "house is not an investment" perspective but I've always considered my primary homes as investments. If I need to conform to your definition, I view capital appreciation as the revenue and I would be paying MORE of those expenses if I rented.

[tophcfa]

The good news is that Social Security recipients may receive an 8.7% cost-of-living adjustment next year.

And the bad news is that will make the social security fund go dry even sooner.

[kkingston57]

For those who may have spare money to invest, check into iBonds. Max is $10k per individual. 9.2% interest annually for next six months. Gvt re evaluates interest every six months. A solid investment and
way to safely park $10k per person with very good return.

Google I bond for details. Only individuals can purchase thru US Treasury Direct Website.

Only "problem" is that you can only invest 10k per person and 15K if you overpay estimated taxes and you can add $5K if your tax refund is 5K or more.

[kkingston57]

Can anyone name anything that's ONLY 8.3% higher than last year?

It looks more like 50%, when I walk the aisles at Wal-Mart, or fill my tank, or read my tax appraisal, or pay my insurance bill.

But Good News Everybody! My Social Security check went up 7% this year! (But then they hiked my Medicare bill 20%, so there's that).

Gee, you don't think this could be related somehow to paying everybody a bunch of monopoly money to take a year off and hide in their basement from Covid, do you? Whodathunk that would cause problems?

I'm trying think of a country that ever survived 50% inflation, and I'm drawing a blank. Maybe our gooberment just "identifies" with 8.3%! Everybody knows, that's not the same as lying, right? That could work, right?

Go to Aldi, there prices have stayed the same for many items, particularly dairy products.

Also warehouse stores still very fairly priced. Still can get a fully cooked chicken for $4.99 at Sams and BJ. Bought jumbo shrimp for <$10 a pound. $1.50 for head of lettuce. Don't forget the 1/4 pound hot dog with a drink for $1.50

[Full-timer]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

Wrong. Inflation NEVER includes fuel and food. Look it up for crying out loud.
Shut off what you are listening to.

[Caymus]

Wrong. Inflation NEVER includes fuel and food. Look it up for crying out loud.
Shut off what you are listening to.

Depends on the inflation indicator. Most people refer to the CPI which includes food and energy. Core inflation does not include those components.

[CoachKandSportsguy]

An investment must generate revenue and can't have expenses? So, a technology ETF that generally doesn't pay dividends and has an expense ratio is NOT an investment? I can certainly understand the "house is not an investment" perspective but I've always considered my primary homes as investments. If I need to conform to your definition, I view capital appreciation as the revenue and I would be paying MORE of those expenses if I rented.

standard finance definition. . . many article written about it

The truth? Your house is not an investment | MoneyUnder30 (https://www.moneyunder30.com/why-your-house-is-not-an-investment)
Why Your Home Is Not An Investment | by Adam Del Duca | Making of a Millionaire (https://themakingofamillionaire.com/why-your-home-is-not-an-investment-52f33e29b41b)
Your house is not an investment | David Moon (https://www.knoxnews.com/story/money/columnists/david-moon/2022/03/25/your-house-not-investment-david-moon/7132635001/)
A Wharton Professor Explains Why a Home Isn't an Investment (https://www.businessinsider.com/wharton-professor-home-not-an-investment-2016-10)
Your Home is not an Investment, Sorry (https://www.wealthnoir.com/blog/homes-investments/)
https://jonluskin.com/your-home-is-not-an-investment/

should i keep going?

but you can do whatever you want to do, you can think whatever you want to think, there is no thought police here. but if you want to think financially correct, you might want to think a bit differently. Do i care how you think about your house? not in the least. I couldn't care less.

finance guy

[Rainger99]

Wrong. Inflation NEVER includes fuel and food. Look it up for crying out loud.
Shut off what you are listening to.

What does The Villages use to calculate the increase in amenity fees?

[manaboutown]

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc

It depends. Cars: When I was in high school and college I bought and sold maybe 20 cars. I always made a profit. I started with a 1939 Chevy business coupe I bought in 1957 for $35. When I graduated college in 1964 I owned a 1956 Jaguar XK140 roadster and a 1957 Cadillac Fleetwood. I sold the Jag at a huge profit and drove the Cadillac all over the country for a while. Wish I had never sold that Jag...

Houses: I bought my first house for about $28,000 in Alexandria, VA in 1967, sold it six months later netting $33,000. I put as little as possible down and was leveraged to the hilt but houses were appreciating at that time. I have never taken a hit on a house and I have moved a lot so have owned many. My last Newport Beach house cost me $650K in 1994 and is now worth $3.5M. I lived in it until I moved here a few years ago. Rather than sell it and get killed by $1.2 M in income taxes (CA taxes LTCGs as regular income, top rate 13.3%) I rent it out at $7,500/mo.

As far as houses costing a person to own, we all have to live somewhere! Rent is usually paid out of after tax dollars and renting a nice home can be expensive if you can find one in a good area. Plus the landlord can raise the rent, sell the house or even kick you out and move back in. I would rather own.

[Stu from NYC]

59.6 cents/minute/week? Probably a bit overpriced for that nonsense:1rotfl::1rotfl::1rotfl:

You can always make us an offer. Or we can uncle Guido make you an offer you cannot refuse.

[Rainger99]

(CA taxes LTCGs as regular income, top rate 13.3%)

WOW!!! Why does anyone stay in California???

[melpetezrinski]

standard finance definition. . . many article written about it

The truth? Your house is not an investment | MoneyUnder30 (https://www.moneyunder30.com/why-your-house-is-not-an-investment)
Why Your Home Is Not An Investment | by Adam Del Duca | Making of a Millionaire (https://themakingofamillionaire.com/why-your-home-is-not-an-investment-52f33e29b41b)
Your house is not an investment | David Moon (https://www.knoxnews.com/story/money/columnists/david-moon/2022/03/25/your-house-not-investment-david-moon/7132635001/)
A Wharton Professor Explains Why a Home Isn't an Investment (https://www.businessinsider.com/wharton-professor-home-not-an-investment-2016-10)
Your Home is not an Investment, Sorry (https://www.wealthnoir.com/blog/homes-investments/)
https://jonluskin.com/your-home-is-not-an-investment/

should i keep going?

but you can do whatever you want to do, you can think whatever you want to think, there is no thought police here. but if you want to think financially correct, you might want to think a bit differently. Do i care how you think about your house? not in the least. I couldn't care less.

finance guy


Here is quote from your first link, "can only be an investment if you sell them for a profit." Uh, who doesn't sell a home for a profit?
2nd link - " aren’t appreciating enough on average to beat inflation" LMAO. Have you seen home prices the last 3 years. They have appreciated 10x over inflation
3rd link - Every investment does not need to be the "centerpiece of your retirement plan", it can simply be a part of a well diversified basket of assets. I also don't rely on "housing inflation to provide for {my} financial independence."
4th link- "If what you're spending each month on housing jumps when you move from renting to owning, that's not necessarily a wise financial move just because you're getting equity." This author must not live in The Villages. Costs to carry a modest home are approximately $12,000-$16,000. Costs to rent a modest home are $18,000-$22,000. Seems like an easy financial decision.
5th link - "An investment is something you buy with money expecting it to produce more money than it cost" So, last 3 years, my home has appreciated $145,000 and carrying costs were $41,000. Sounds like an outstanding INVESTMENT. $104,000 gain!
6th link - "Yet, when calculating the investment return on your personal residence, you very likely lost money after including the ongoing costs of homeownership." This guy definitely doesn't live in TV or skipped his math classes.

"should I keep going"? Uh, yes if you want to prove your point.
"but if you want to think financially correct, you might want to think a bit differently" No thanks, I'm good.

[joelfmi]

If inflation would lessen our countries domestic policies would have to change and reflect that their domestic policies are not helping our economy and are only making it worse.

[Ksfirefighter]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.

I saw one article that said if you exclude food and gas, inflation was "only" 6.3%. However, I don't know why you would exclude two items that are necessary to survive. Maybe you could exclude entertainment or travel - which are more discretionary spending than food and gas.

There is an old saying

Figures don’t lie but Liars can figure!

[Stu from NYC]

Why not just keep excluding items ( that make up inflation) and then pretty soon there will be no inflation. A good government trick

Good point

[OhioBuckeye]

Well I think we all know why without anybody giving any hints!

[Rainger99]

I just saw that the threatened Amtrak strike has been resolved.

The new contract provides rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.”

[golfing eagles]

I just saw that the threatened Amtrak strike has been resolved.

The new contract provides rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.”

Well, THAT won't contribute to inflation:1rotfl::1rotfl::1rotfl:

[Stu from NYC]

I just saw that the threatened Amtrak strike has been resolved.

The new contract provides rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.”

Wow talk about giving away the store

[OhioBuckeye]

Oh wait a min. watch the pointing fingers you’ll get banned, LOL. Don’t mention names!

[OhioBuckeye]

No it didn’t get resolved the govt. put a halt to it for now because they say the country is hurting bad enough from what they did. My grandson is a controller at the Ft. Worth TX. hub. He said basically the strike has been put on hold for now. It hasn’t been resolved!

[OhioBuckeye]

Who got us into this mess? It wasn’t the railroad employees.

[Keefelane66]

I just saw that the threatened Amtrak strike has been resolved.

The new contract provides rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.”
I can say you are a wealth of misinformation it is not an Amtrac Strike.
It contract dispute between unions and tail transportation owners like Union Pacific, CSX...
Amtrak was going to cancel passenger traffic rails they do not own or control.

[Haggar]

Anyone feel as I do? Some participants hog these threads.

Out of 92 posts 12 are one poster. No wonder his count is so high. And that's just one thread!

Does he have to comment on so many comments?

Feeling grumpy today. I know I can skip his posts.

[Vermilion Villager]

Inflation is still high - it was 8.5% in July and it was 8.3% in August.
.
And next month we will all be high-fiving each other when we get what is estimated to be a 8 1/2 to 9% increase in Social Security! :beer3:

[Stu from NYC]

And next month we will all be high-fiving each other when we get what is estimated to be a 8 1/2 to 9% increase in Social Security! :beer3:

What do we do when they tell us they must reduce benefits?