Remembering when bread cost a dime....
Movies were 10-20 cents....
Gas 10 to 99 cents....
etc....
Having survived to 2022.....
No problem!

There is no shortage of not only different OPINIONS but people in different financial situations. Our current situation the CPI consumer price index is now running roughly 10%. We all pay that after taxes.
To be even I need to make roughly 13% on my savings. This year I've done less than half of that. Bonds and cash surely will not yield 13%. Any interest on bonds or cash is taxed at your highest tax rate. Average age in the villages is 70. Assuming some, many people have an IRA, 403B or whatever other codes there are will be forced to take required minimum distributions at 71. That is taxed at your highest tax rate. It is the wrong place to hold dividend paying stocks. As in a taxable account dividends are taxed at a lower rate than your highest tax rate.

The old thought 60% stock 40% bonds or the other way around 60% bonds 40 % stocks were valid in the OLD DAYS. Treasuries now are paying like 2% inflation is now 10%. Long history Treasuries would pay the rate of inflation plus 2% so people would build a bond ladder and be even. Far from what it is today.

Since you are flooding the airways with "just curious" subjects please post them where they belong - The Villages, Florida. non villages discussion.

What is the difference all of these posts are found in this one section anyway?

Because interest rates are so low I have been putting an increasing percentage of our portfolio in what I call defensive mutual funds.

Most of this is in value and dividend growth funds that are conservative in nature but have done rather well over the past 10 years.

Remember the days when our country and its residents weren’t hopelessly dependent on unsustainable debt levels. Back then the Federal Reserve would use it’s available tools to guide interest rates to a level where responsible savers could earn a real rate of return owning US Treasury notes and bonds. A real rate of return was a yield above and beyond inflation. Both our country and its residents were typically fiscally responsible. Spending was limited to what could be afforded without taking on crazy levels of debt.

It makes me shake my head when I hear the Federal Reserve is now becoming hawkish on inflation. Since inflation has begun to run out of control, they have raised the Fed Funds rate by a minuscule 25 basis points, or one quarter of 1%. If the Fed really wanted to make a bold statement, and demonstrate seriousness about containing inflation, several rate increases of 1 - 2% each are necessary, but it can’t happen because it would effectively bankrupt both our country and many debt laden citizens. Last time inflation was this bad was in 1981. Paul Volcker was the chairman of the Fed back then and short term interest rates were jacked up to 20%, which quickly nipped inflation in the bud. We desperately need someone like Volcker overseeing our country’s monetary and fiscal policies now.

They are planning on numerous increases of 0.25% thru the rest of the year. Do believe they should increase rates faster.

I would say more but do not want to get into trouble.

No changes with any of our lifestyle. But I have a good financial guy, and plan for whatever

And I still don’t think is computer is fixed

Yet:duck:

Remember when made 5 dollars day. Remember when minimum was $1.15 hour. I don’t want to remember. :ohdear:

I travel less, I cook at home, I play Lotto

I-bonds
 

Yes. The base rate for I-bonds purchased this year is 0, but the current overall rate is 7.12%, which is reset every 6 months. You can purchase up to $5,000 per tax return per year using your tax refund and up to $10,000 per year per person via Treasury Direct. Plan to keep them at least 1 year and preferably 5 years or interest penalties apply (although after the first year it's not bad). We will be maxing out our I-bond purchases this year.

I've always been quite frugal, so not much change for me, except eating more peanuts and less nuts.

Two ways we are fighting inflation.
 

1. Keep working. We had planned for full retirement in January of 2021 using a projected rate of inflation double the rate of the previous 4 years. We figured that would give us a good cushion, After digesting the results of the 2020 election my wife is still working full time and since I retired a few years ago, I am taking on all the things that we would normally pay someone else to do. House cleaning, plumbing, yard work, painting, etc.

2. Voting for those who will move the country to not only to full energy independence, but becoming the world's top exporter of natural gas.

FYI-the more USA natural gas we export to China and India, the less green house gases will be produced. Why - more electricity will be produced using gas instead of coal. Compared with coal, gas puts 1/2 the amount of CO2 into the atmosphere per KW hour produced.