Making every penny count!
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Blue In BC
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If that was true he lost a fortune in interest over 23 years.
There's also the loss of purchasing power (by the time you pay your taxes on the earned interest, does it even offset inflation?). 23 years of 3% average annual inflation will erode a dollar to only 1/1.0323 = ~50% of its original real value, which is consistent with the approximate doubling of the US CPI over roughly that stretch of the recent past (source: http://www.bls.gov/news.release/cpi.nr0.htm )Blue In BC wrote:If that was true he lost a fortune in interest over 23 years.
Sports can be a peculiar thing. When partaking in fiction, like a book or movie, we adopt a "Willing Suspension of Disbelief" for enjoyment's sake. There's a similar force at work in sports: "Willing Suspension of Rationality". If you doubt this, listen to any conversation between rival team fans. You even see it among fans of the same team. Fans argue over who's the better QB or goalie, and selectively cite stats that support their views while ignoring those that don't.
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Soundy
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sj-roc wrote:There's also the loss of purchasing power (by the time you pay your taxes on the earned interest, does it even offset inflation?). 23 years of 3% average annual inflation will erode a dollar to only 1/1.0323 = ~50% of its original real value, which is consistent with the approximate doubling of the US CPI over roughly that stretch of the recent past (source: http://www.bls.gov/news.release/cpi.nr0.htm )Blue In BC wrote:If that was true he lost a fortune in interest over 23 years.
I think I need a drink now.
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(='.'=)This is Bunny. Copy and paste bunny into your
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(='.'=)This is Bunny. Copy and paste bunny into your
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'Tis the season!Soundy wrote:I think I need a drink now.
Sports can be a peculiar thing. When partaking in fiction, like a book or movie, we adopt a "Willing Suspension of Disbelief" for enjoyment's sake. There's a similar force at work in sports: "Willing Suspension of Rationality". If you doubt this, listen to any conversation between rival team fans. You even see it among fans of the same team. Fans argue over who's the better QB or goalie, and selectively cite stats that support their views while ignoring those that don't.
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Blue In BC
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- Joined: Sun Mar 09, 2003 9:32 am
- Location: Port Moody, BC
RRSPsj-roc wrote:There's also the loss of purchasing power (by the time you pay your taxes on the earned interest, does it even offset inflation?). 23 years of 3% average annual inflation will erode a dollar to only 1/1.0323 = ~50% of its original real value, which is consistent with the approximate doubling of the US CPI over roughly that stretch of the recent past (source: http://www.bls.gov/news.release/cpi.nr0.htm )Blue In BC wrote:If that was true he lost a fortune in interest over 23 years.
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Blue In BC
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- Joined: Sun Mar 09, 2003 9:32 am
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Not my idea of a good plan for savings.MacNews wrote:Yes but at least he saved his money instead of spending it, it's the principle that counts.Blue In BC wrote:If that was true he lost a fortune in interest over 23 years.
I know, RRSP is the best. People can be forgetful, especially with inflation. They brag about how cheap they bought their house or how much it has appreciated, but not realizing that with inflation their house isn't that cheap in todays dollars. Or averaging out the returns isn't that good compared to mirroring the Dow. But saving is the first step!Blue In BC wrote:Not my idea of a good plan for savings.