Comments on: Compound Interest Versus Inflation: The Battle For Your Money http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/ Simple, applicable personal finance advice for the modern world Sun, 21 Mar 2010 15:38:53 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Mike http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-635078 Mike Tue, 21 Apr 2009 00:36:47 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-635078 How are those stocks going for all of you now in 2009? Still think you are beating inflation? I hope you know when to hold em and know when to fold em. Only the top Nth percent win at this corrupt game. How are those stocks going for all of you now in 2009? Still think you are beating inflation? I hope you know when to hold em and know when to fold em. Only the top Nth percent win at this corrupt game.

]]> By: Mike Taylor http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-198355 Mike Taylor Wed, 05 Mar 2008 23:31:29 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-198355 I am a little late to the party,but great article. I was searching for a calculator with compounding interest that takes into account inflation and came across this post. I think too many people forget about inflation when thinking about long term investment. I am a little late to the party,but great article. I was searching for a calculator with compounding interest that takes into account inflation and came across this post. I think too many people forget about inflation when thinking about long term investment.

]]> By: TJP http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-21752 TJP Mon, 30 Apr 2007 05:06:11 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-21752 You brought up a good point: savings is the intermediary between your income and your investments. I like to hold a sizeable cash balance before I dump any funds into investments. Although I keep a few hundred dollars in low-yielding savings accounts for reasons other than monetary gains, a diversified portfolio of bonds, reits, commodities, savings, and stocks beats inflation every time. You brought up a good point: savings is the intermediary between your income and your investments. I like to hold a sizeable cash balance before I dump any funds into investments.

Although I keep a few hundred dollars in low-yielding savings accounts for reasons other than monetary gains, a diversified portfolio of bonds, reits, commodities, savings, and stocks beats inflation every time.

]]> By: lorax http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-21076 lorax Fri, 27 Apr 2007 00:55:39 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-21076 @Ian - I agree, but the Slate editor did a real disservice with the article's title. It's eye catching, but misleading and practically diametrically opposed to the point of the article. Perhaps due to that title, Trent missed the whole point of the story. It's also odd that we haven't seen a comment on the author's suggestion that "we should make long-term savings tax exempt." Personally, I don't think this could fly in our current environment. After all, we have a huge govt deficit that will need to be paid off by taxpayers (http://www.brillig.com/debt_clock/), but that's another story. @Ian – I agree, but the Slate editor did a real disservice with the article’s title. It’s eye catching, but misleading and practically diametrically opposed to the point of the article. Perhaps due to that title, Trent missed the whole point of the story.

It’s also odd that we haven’t seen a comment on the author’s suggestion that “we should make long-term savings tax exempt.” Personally, I don’t think this could fly in our current environment. After all, we have a huge govt deficit that will need to be paid off by taxpayers (http://www.brillig.com/debt_clock/), but that’s another story.

]]> By: chris http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-21023 chris Thu, 26 Apr 2007 20:07:05 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-21023 Besides HSBC account and maybe risky stocks, what other areas can one invest in, how can I put my $20,000 or (and yes I do have it) to work for me, I am looking, but I lack good information as to where to invest? Besides HSBC account and maybe risky stocks, what other areas can one invest in, how can I put my $20,000 or (and yes I do have it) to work for me, I am looking, but I lack good information as to where to invest?

]]> By: don http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-21012 don Thu, 26 Apr 2007 19:11:18 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-21012 Great Blog! Small correction. The SYMPTOM of inflation is an increase in prices. Inflation itself is a monetary phenomena. That is, inflation is (at the source) an increase in money supply. Check out mises.org for more great information about economics. Great Blog! Small correction. The SYMPTOM of inflation is an increase in prices. Inflation itself is a monetary phenomena. That is, inflation is (at the source) an increase in money supply.

Check out mises.org for more great information about economics.

]]> By: Ian http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-21010 Ian Thu, 26 Apr 2007 18:57:12 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-21010 I'm disappointed that you have again misstated Blodget's intent in that article. As I and several other people pointed out in the comments of the previous post, the article didn't encourage people to spend all their money. In fact, you have to try really hard to read it as doing such. This post is a good argument for why Blodget's position isn't that strong: taxes and inflation don't inevitably mean less money in the long run if you put it somewhere with even a modest rate of return. But you don't have to claim that he's actually in favor of frivolous spending to make your point. I’m disappointed that you have again misstated Blodget’s intent in that article. As I and several other people pointed out in the comments of the previous post, the article didn’t encourage people to spend all their money. In fact, you have to try really hard to read it as doing such.

This post is a good argument for why Blodget’s position isn’t that strong: taxes and inflation don’t inevitably mean less money in the long run if you put it somewhere with even a modest rate of return. But you don’t have to claim that he’s actually in favor of frivolous spending to make your point.

]]> By: Carl http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-20992 Carl Thu, 26 Apr 2007 16:56:39 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-20992 @Kev I think you got that wrong, Inflation is inflating... ;) @Eric What I do is only have in savings (besides emergency fund mind you) what you will need to spend in six months to a year. Anything further than that dump in stocks. @Trent Great article, I think you explained the entire scope of money as related to savings accounts. @Kev
I think you got that wrong, Inflation is inflating… ;)
@Eric
What I do is only have in savings (besides emergency fund mind you) what you will need to spend in six months to a year. Anything further than that dump in stocks.
@Trent
Great article, I think you explained the entire scope of money as related to savings accounts.

]]> By: broknowrchlatr http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-20991 broknowrchlatr Thu, 26 Apr 2007 16:48:58 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-20991 Good article. For me, real results speak for themselves. I'm in all mutual funds. I don't think any of them are considdered actively managed. As of yesterday, I have 7.3% return YTD. Had I spent it, I'd prolly have an effective return of -75% by now. Not so hot :) Good article. For me, real results speak for themselves. I’m in all mutual funds. I don’t think any of them are considdered actively managed. As of yesterday, I have 7.3% return YTD. Had I spent it, I’d prolly have an effective return of -75% by now. Not so hot :)

]]> By: kev http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-20990 kev Thu, 26 Apr 2007 16:45:30 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-20990 Inflation is depressing. Inflation is depressing.

]]> By: Eric http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/comment-page-1/#comment-20988 Eric Thu, 26 Apr 2007 16:33:12 +0000 http://www.thesimpledollar.com/2007/04/26/compound-interest-versus-inflation-the-battle-for-your-money/#comment-20988 Good article. I have been thinking of moving a portion of my "savings money" held in HSBC over to stocks. This is where I put my savings for short term (insurance, vacation, Christmas) and long term (cars, emergency fund, etc). Regardless of my different expenses I figure I will always maintain a certain level of savings money (at least ~50% of what I have now). Seems like I should leverage this money to investments? Good article. I have been thinking of moving a portion of my “savings money” held in HSBC over to stocks. This is where I put my savings for short term (insurance, vacation, Christmas) and long term (cars, emergency fund, etc). Regardless of my different expenses I figure I will always maintain a certain level of savings money (at least ~50% of what I have now). Seems like I should leverage this money to investments?

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