Re: A Glaring Lack of the Obvious

pullo <pullo004@xxxxxxxxx> wrote:
"Nate Edel" <archmage@xxxxxxxxxx> wrote:
Keith F. Lynch <kfl@xxxxxxxxxxxxxx> wrote:
If you know of a bank that pays interest rates that, after taxes,
exceed the inflation rate, please tell me. Thanks.

The highest regular savings rates I've been seeing are around 4.5%;

At what bank? Mine gives an annual interest rate of slightly less
than 1%. I've checked several others, and they're comparable.

These are all "bricks and mortar" banks. I'm reluctant to put my
savings into an online bank, lest I end up with a balance of "404."

Not that I'm agreeing with Keith's investment strategy of putting it
in a savings account,

I also have a retirement fund in mutual funds. Unlike my savings
account, it *dropped*, not just in buying power, but in dollar value.

but I would venture from what he has related here he is probably
not as affected by inflation as the average person.

My biggest expense is rent -- which went up again this year, and is
now about four times what it was when I moved in. My second-biggest
expense is Metro fare. It was announced yesterday that next month
will be the largest ever increase in Metro fares -- even though they
had recently increased by 10 percent one year, then an additional 20
percent the next year. Metrorail round trips will cost up to nine
dollars. Even more if you transfer to or from a bus, or park a car
in a Metro lot.

Most pointedly someone who does operate a motor vehicle is more
exposed to more price volatility to the upside.

Lots of people will certainly be switching to driving cars, thanks to
Metro's high prices and crappy service. And rush hour traffic around
here already has to be seen to be believed. On Thursday I outwalked
an ambulance. Although it had its lights and sirens going, vehicles
couldn't pull out of its way, as there was no place for them to move.

On Friday, when I was heading to a PRSFS party, Metrorail delays
caused me to miss the Z2 Metrobus that left Silver Spring at 6:47
pm. But since I was only about ten minutes late, I simply walked up
Colesville Road until I caught up to and passed the bus, then I waited
for it and boarded it at the next bus stop. (Of course that meant I
had to pay full fare, rather than getting the benefit of the Metrorail
transfer. As usual, the worse their service, the more money they get
for providing it.)

But more than that his, uhhhh, tendency to make do without what many
consider essentials does have its advantages vis a vis inflation.

Not if you've *already* long since cut out everything you can.
--
Keith F. Lynch - http://keithlynch.net/
Please see http://keithlynch.net/email.html before emailing me.
.

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