Yes.

and those you leave it to will thank you for being frugal !!!

What?
 

They ate plenty of stolen meat sacking and plundering

I remember those days. I had cousins building a huge house in Oregon at the time, using a building loan, and they had to get a mortgage when the home was finished at a punishing 20% interest. There was no way I could have bought a house at that rate. What would happen to home sales—and thus home values—in The Villages if we had 20% interest? The only reason I can afford to live here is that I put my retirement money entirely in stock mutual funds, and between 2016 and 2022 the worth has doubled. (Unfortunately, the war is hurting me a lot.)

I had a girlfriend who was a hotshot in investment banking, and the word “on the street” (Wall Street) was that regardless of who won at the polls, Covid and the money we would need to spend to help millions of people stay afloat, along with the losses to many businesses and employees from loss of customers (think airlines, oil companies, construction, restaurants, hotels) would INEVITABLY lead to serious inflation. There was no way around it. If you pay restaurant and warehouse employees a fairer wage—and we should—of course our food is going to cost more in restaurants and stores. If there are transportation bottlenecks, and those were also inevitable, that also increases costs. If people go on buying sprees for things that are hard to find, that causes inflation. That’s just how it works! Meanwhile, desperate restaurants and hotels and airlines that lost a huge amount when they had almost no customers are raising prices to unusually high levels, even unprecedented levels, to try to make up for what they have lost and avoid being forced into bankruptcy.

No free lunch
 

I know enough basic macro economics to know my limitations and that there is no free lunch. During the pandemic, government saved the economy by giving money, and reducing payments to folks and businesses that would have otherwise gone under. Frankly, they did a great job of saving the nation from the worst, but there had to be a downside and we are looking it in the teeth now. Considering the magnitude of the problem, they are doing a fair job of managing the problem.

Barring total collapse, we have enough saved to survive until our death, so we haven't changed much. We have been relatively frugal and plan to continue as such.

If I were much younger, this would be my strategy: Spend my accumulated savings to buy something at 2022 dollars that will earn a little until the inflation is under control and then sell it at 2030 dollars. A good option now would be to buy a Villages villa now, rent it out, and sell it in 2030.

There is always risk of gain or loss, but the alternative is certain loss.

I remember when minimum wage was $6.55/hour, and gas prices were $4.11/gallon. I was working in an office earning $13.72/hour, which was decent, for an entry-level generic non-management office job. What was even better, was they paid 100% of our health care premiums on a VERY good health care plan with low co-pays, no deductible, and Rx, dental, and eyeglass coverage, we got 3 weeks paid vacation every year, plus 20 sick days per year, plus 3 personal days per year, and we could take our birthday off with pay. If we didn't take all 20 sick days, the balance would carry over for another year, allowing us up to 40 sick days in any given year if needed.

You don't see any of that anymore. They boast about $10 minimum wage here but good luck finding a job that gives you a break during the day, let alone sick time, vacation pay, or paid premiums on health care plans.

Meanwhile on our fixed income, we're managing. We're not thriving, but we weren't thriving before either. In another year I'll start getting social security checks, and that's when I trade in my old 2010 tin can for a newer used car. Maybe I'll get my old car tricked out, heh - it doesn't even have 100k miles on it so maybe I'll go that route instead. Fix the rust marks, give it a nice spray job, add a new stereo system with 6-CD changer, and maybe some soundproofing panels and some way to reduce the road noise.

I'll respond to the OP's question of what are we doing differently....

We do a better job 'planning' our errands before we jump in the car...this saves a little gas.

We tend to order a few more things online and get free shipping...that saves on gas and usually the price is similar

We canceled a number of trips due to Covid-19, back in 2020, not because of inflation. I have one trip planned this year (in the states, by car, visiting family and attending a school reunion)

Actually Covid-19 more than inflation was the catalyst for us cutting back on spending. We had easily been dropping 30K+ a year on travel.

Since Covid-19 hit we have only traveled once, and that was in the states, by car to visit family

When Covid-19 hit, I began looking at how we might conserve on spending:
- I changed from using credit cards that offered points to cards that offered cash back. I use an Amex card that gives me 6% back at Publix...and a different card that gives me 2% back on everything else. It adds up, as I run just about all our regular expenses through the 2% card and pay the balance off each month on both
- I cancelled a few 'extra' credit cards that we had that we weren't using that had an annual fee

- brought the cell phone bill down...we were paying for more than we were using

- I shopped around for home and auto insurance (apples to apples, & lowered the bill by $300 over what it would have been this year)

- I pay attention to what Publix has on sale and plan the meals around that as much as possible

- I shop at BJ's every other month for those things that I like to buy in bulk, and clip their coupons

- I buy the 'gas cards' from Publix when they offer them

- we don't eat out much...we might eat lunch at a restaurant occasionally... I enjoy cooking

- I am more selective on what we go to see at The Sharon, and The Savannah Center....we used to be at one or the other every week

We shifted the portfolio a little to have more high yield dividend stocks, thinking 4% would be a good hedge against inflation....well, we all know how that's turning out.

Never waste good agony
 

Treasury bonds have gone up for 1 year 1.73 % you have to do your home work to find decent interest rates CD's are not very good now

On a positive note, have you checked the value of your house? At least in The Villages inflation has proven to work in our favor. Hope that's true for you.

Our house does have much more value but since we have no plans to move doesnt do us much good but our kids that would be another story.

Inflation
 

I detest the term "seniors on a fixed income". Ask anyone who works for a living if they are on a fixed income or not? Do you think the employee can walk into their employers office and demand a raise to keep up with inflation? Don't think so. Do retirees receive cost of living adjustments to their SSA and pensions? Some do without having to go to their providers and request them.
Yes, inflation affects us all but don't think those working for a living have a choice to increase their wages upon demand to keep up with inflation.
It seems like no one wants to back off on their spending. Industry needs to drive the economy, not the consumer. Bring back overseas jobs so the supply chain is not disrupted again. Reinstate construction of pipelines for oil and natural gas transmission. Close the southern boarder and relieve the taxpayer from paying for all the benefits invaders take advantage of by walking across the southern boarders, which many taxpayers cannot afford on their pay. Quit printing money and giving away money and our next generation's future in this process. If you make a commitment to repay a loan, then repay it. Don't expect "forgiveness" and duck you responsibility to pay. If everyone could do this how would the banks survive? Without banking the economy would collapse. The system isn't perfect, but it must operate efficiently to work. What we have in place is not working efficiently and is detrimental to everyone, not just retirees.

How is this a positive ? Unless it was investment property and you are selling and not buying another house (because that one has increased by the same percentage) what your feeling is no more than emotion. In fact that increase will cost you money - example homeowners insurance will go up based upon replacement cost.

OBB, add your anticipated Social Security Income to your husband's income then go to Healtcare.Gov (Obamacare) and check out your exact coverage today against what it will be with your new S.S. income. Get prepared to trick out what you've got. Sorry to be the bad news guy but this just happened to my best friend in Jorsey. Sad.

Inflation, whatever, we are alive and kicking. I'm good with whatever comes at us. :1rotfl: I may be shocked sometimes but what are you gonna do? NOTHING! I did some shopping the other day at Publix and was shocked beyond shocked at some of the prices.

If you haven’t earned money in your investments, you haven’t lost it. Having a fixed income today is affected by inflation. Fortunately I was living below my means, so inflation is not affecting my lifestyle.

I was referring to losing $6K per year in purchasing power, based on the higher prices due to inflation. So, if you invested $100K at 2 percent, you would have $102K in a year. But, if you were going to buy two cars for $100K and the price is now $108K, you can no longer afford them. That is what happens when the interest rate is lower than the inflation rate.

In my opinion, saving money should be rewarded, not punished.

Great answer!

That is why I only buy stuff at Publix that we cannot get elsewhere

Very well said

Our financial planner says we have to die one year sooner now to allow for losses due to inflation...

One way to fight inflation
 

One way to save money. Do not shop at Appliance Direct!!
They are not a reputable company and unfortunately we found that out the hard way!!

If he charges you based on a percentage of assets on a yearly basis he loses if you die a year early.

Hope he realizes that or not much of a planner for his own income.

If I can't buy it at Aldi's, I don't eat.

Don’t you mean on a negative note, your home will be reaccessed and your property taxes will get jacked up.

I agree with you. Things are bad all over the world, but the US is starting to turn the corner.

We also have enough to last us, unless the bottom falls out completely. We would like to leave as much as possible to our kids, so we are usually "frugal" and now is not any different for us. We mostly cook at home, (eat out when we go to Gainesville to the VA Doctor) and that is about all the eating out we do. We typically don't drive much of anywhere, so the gas we drive is for our trips to the doctor - a few times per month.

Many pension plans and SS have built in increases that however only very rarely keep pace with buying power of the dollar, working people have the option of finding employment elsewhere if their employer cannot or will not compete with other business they lose workers , Inflation is and always has been a function of more money chasing the same amount of goods and services, this is controlled by monetary policy and fiscal policy of our government, the money given out by our government to make for a soft landing and ,they said prevent a recession, was too soft causing a rebound in inflation, we now are seeing an inverted yield curve something that historically prestages a recession

Wife and I both came from very poor families, inherited nothing, but worked our socks off to give ourselves a better life.
We look at at inheritance from a different angle, ie. the kids can have anything left over!

covered calls
 

hope you own the stock if you are writing covered calls.

I consider myself semi-retired and will continue to take part-time marketing jobs for websites the rest of my life. The only difference is I don't have to get up at 7:00 in the morning to commute an hour and a half to New York anymore

If you have your money in a savings account you have been losing money your whole life. To make money, you have to invest it. No cd/savings account interest rate will make you money compared to investing it in the market, never had, never will. Last year, I averaged over 35% gain in my portfolio, why would I think of putting my money in a cd that gets 2% or less?
But now isn’t the time to jump all into the market either IMO.
IMO, learning finances at an early age in life is critical so you have enough money in your later years to not have to worry about these inflation periods. If you don’t know how to invest, hire a good person to do it for you but you need to learn what they are doing and why so you can do it yourself in the long run.

Totally agree. Kids(many) today are living much better than we did. We had it hard, often working three jobs to provide for the bills and food on the table. The kids don't even remember and told us that they had a great childhood. My kids are living better than we are, so why should we cut corners just so we can leave them a decent nest egg? Sorry, but we will continue to save only for emergencies and the ability to eat out once a week. Our grocery bill has doubled, and we purchase a lot of store brand products now. And we do have the option to move to an area where we would not have to pay all the fees we pay to live in the Villages. We are on a fixed income, but we have no intention of sacrificing just to GIVE our kids a gift of our dying. What little we could give them would be gone in a flash anyway. My only concern is leaving enough for my spouse to live comfortably and not have to rely on the "kids." Even though life insurance is not the optimum investment, I have enough to provide my spouse with a respectful sustainability. If not used, THEN the kids get what is left over. We were gifted nothing by our parents, except funeral bills but we managed. We won't be leaving our kids funeral bills.
Inflation is aggravating to us that are on fixed incomes.
Food seems to be doubled
Utilities have gone up
Fuel has doubled
Eating out has gone way up
But, we can hang on again and will enjoy a breather eventually, where we will be able to catch our financial breaths before then next economic fiasco.

the increased assessed value of our house was the prime reason our home insurance went up a little this year....not the 'roofing scams'

I never invest in bonds, so my answer is yes to all stocks/index funds. I have in the past invested in hybrid funds where they are more balanced say 50/50 stocks/bonds. They are laggards and not much safer. How have bonds been doing the last few years?
When I was all in in the market before this year, I was 98% in 1 stock and 6 index funds and last year averaged 35% gains.
When things change later this year and I get back in the market, I will buy exactly what I had before.

Sounds like you and I were brought up with similar values

Have slow the traveling.
I had to order cat litter refill trays…..they are up 60%……60% in the last 18 months
This is getting out of control

Swap the cat litter for sandy dirt.
Plenty of that free in Florida.

Very true lots of good books to be had in the library (or should be in the library) to teach the fundamentals of investing. Or spend a few bucks on Amazon to buy a couple of books.
A good personal finance magazine like Kiplingers is also a good idea

Ultimate results of printing money (inflation) on the holder country of the world's reserve currency does not end well per history. A shortened version of a very educational documentary. Caution not suited for Pollyannas.

https://www.youtube.com/watch?v=Z5OOy82wKCY

Changed My Lifestyle
 

I group my trips as often as possible. I “top off” my gas tank, so it’s always full. Even though I have a economical car, I go where it’s golf cart accessible much more often.

I never ate out much, but now it’s only on special occasions. Prices are soaring and service has declined. I have become a good cook.

I live in a friendly neighborhood and we do things together (golf, lunch, visiting). Expenses are minimal.

I haven’t had a vacation or returned to my native Philadelphia since I moved here four years ago. For the time being, I have no plans to do so.

I cut the cord, switched from Verizon to T-Mobile and am saving $270/month. Due to a golf cart accident last September, I have not played championship golf in over five months I have saved thousands of dollars.

I’ve never lived extravagantly, but I’m am getting used to not having everything I want. Doing okay.