Retiree behaviors in the time of inflation (beach, cousins, singles)
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I get what I need. I see a few rising prices but I don't know where this intolerable level of inflation is located. I do not have a huge number of bells and whistles in my life nor am I attracted to shiny things. I have never bought a latte at Starbucks but I do pick up a plain coffee on occasion. My grocery bill has gone up but I changed my diet significantly over the past six months and will splurge on some things. Gasoline went up a bit but went back down almost as much. My Verizon bill went up $4 for no real reason. I suspect that we might be seeing some manipulation and piling on if there is a broad perception of inflation. I can recall double digit inflation so maybe my threshold of alarm is much higher than some. I am more alarmed at the whimpering and chest beating as if this was 1979.
In my case, what is most inflated are the condo fees for two of my three condos - largely due to majorly increased cost of heating, and in one case increased wages of the maintenance crew for the condo complex (we have private security). If I were a renter, the rent would have gone up astronomically. I spoke to a neighbor in Boston who rents out a unit, and he hiked the rent almost 50% - has to compensate for loss of rental income last year and for increased condo fees.
So, a couple of weeks ago, I was in NYC, and was walking towards an ice cream stand in Bryant Park, facing a dude walking from the opposite direction with little bitty twin daughters who were each licking a very junior-sized ice cream. It was a small waffle cone, with a single smallish scoop of gelato-style ice cream with embedded bits of something like a chopped up strawberry. A small appetizing item, I thought I'd get one myself if the price is right. I figured the fair price for it would be $2, but what with Manhattan and inflation, I figured it would be $4, overpriced but still okay. Then I got to the ice cream stand, and the cost of this small cone with a single small scopp of gelato was $9.99 plus tax. I did not get it. I mean, I have 10 bucks, and like ice cream as much as anyone, but I am not paying that. I'm just not, and that's it, even if I never eat anything prepared by someone other than myself again.
That sounds like the Wafel and Dingles stand. I have to wonder what the rent for that spot must be like, so maybe they can't charge any less and survive. What I like about their prices is that it means there won't be a long line, lol.
The ice cream from one of those sidewalk carts is better anyway. I've never had an ice cream that I thought "this doesn't taste good", so for me it's all about quantity.
Speaking of prices, on the other side of Bryant Park, you can get a 9" chocolate cake for over $100 or a strawberry one for $80 or so. I think it's Lady M cakes.
That sounds like the Wafel and Dingles stand. I have to wonder what the rent for that spot must be like, so maybe they can't charge any less and survive. What I like about their prices is that it means there won't be a long line, lol.
The ice cream from one of those sidewalk carts is better anyway. I've never had an ice cream that I thought "this doesn't taste good", so for me it's all about quantity.
Speaking of prices, on the other side of Bryant Park, you can get a 9" chocolate cake for over $100 or a strawberry one for $80 or so. I think it's Lady M cakes.
Good for Lady M. But for Lady Elle here: chocolate raisins $3.99 at Trader Joe's that last her about a week, and she kind of likes their clear plastic container, handy for organizing storage of misc small items.
They just keep moving the decimal point for some reason. When I was a kid, the cheap small cone was 5cents and the large 10cents. I cant do sugar anymore so doesnt matter to me if its 5cents or $10......
I remember when we could get ice cream at Thrifty's drug store for 39 cents (in the 80s). Now it's Rite-aid, and the ice cream is 1.99 for a single scoop cone. I think that was only in CA that they had an ice cream counter.
Then I got to the ice cream stand, and the cost of this small cone with a single small scopp of gelato was $9.99 plus tax. I did not get it. I mean, I have 10 bucks, and like ice cream as much as anyone, but I am not paying that. I'm just not, and that's it, even if I never eat anything prepared by someone other than myself again.
Yeah, not sure I would pay $10+ for a small ice cream neither, unless I had a huge craving for one at that moment.
Fortunately, We are not picky coffee drinkers. A convenient store coffee will be just fine for me (large cup for $2.99). We use Costco coffee at home on a daily basis. This was even pre-inflation price increases.
how do you figure that when the below is occurring? (not complaining about the 5.9% increase in Social Security)
How much will Medicare B go up in 2022? (which is automatically taken out of one's Social Security check every month by the government)
Medicare's Part B monthly premium for 2022 will increase by $21.60, the largest dollar increase in the health insurance program's history, the Centers for Medicare & Medicaid Services (CMS) announced on Nov. 12. Standard monthly premiums for Part B will cost $170.10 in 2022, up from $148.50 in 2021.
Medicare has a protection clause that prevents drawing more than increase in medicare but would need to be collecting under $350/mo in SS for it to apply - those guys are on Medicaid. Medicaid covers medicare payments if making less than about $1480/mo. For the average retiree collecting $1500/mo, the SS increase is about 4.5% even after paying the Medicare increase - should be able to cover costs increases actually seeing.
Those hurting more are those on annuities or fixed pensions, paying IRMAA that is not protected - their increases are much more that $21 yet income is not increasing any.
Medicare has a protection clause that prevents drawing more than increase in medicare but would need to be collecting under $350/mo in SS for it to apply - those guys are on Medicaid. Medicaid covers medicare payments if making less than about $1480/mo. For the average retiree collecting $1500/mo, the SS increase is about 4.5% even after paying the Medicare increase - should be able to cover costs increases actually seeing.
Those hurting more are those on annuities or fixed pensions, paying IRMAA that is not protected - their increases are much more that $21 yet income is not increasing any.
Annuities/fixed pensions are still okay if you have other stuff in addition to them, particularly if the fixed income is still well above what you spend (ie, if you accounted for a fair bit of inflation when planning your annuities - eg, I accounted for about 5.5% inflation every year for 35 years when setting up my laddered annuities). You simply spend the fixed income, and allow your real estate and anything else you have to get inflated with inflation. It is a different approach from withdrawing an increased % from the "portfolio" to live on, but it still works, particularly if you only have to support self & don't need to leave inheritance.
...but it still works, particularly if you only have to support self & don't need to leave inheritance.
You may even WANT to go broke if you have no one to leave it to (unless you feel strongly about a charity), or at least the prospect of doing so eventually shouldn't unduly stress you out...
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