Author Topic: What will the next 10%+ correction look like?  (Read 39241 times)

PathtoFIRE

  • Pencil Stache
  • ****
  • Posts: 614
  • Age: 40
  • Location: Dallas
Re: What will the next 10%+ correction look like?
« Reply #150 on: May 06, 2015, 07:44:42 AM »

Mustachians don't suffer from inflation because we readily switch to substitute goods.  For example, when the price of beef went up earlier this year, I just started drinking gasoline.

You may not suffer from inflation, but you will surely suffer from inflammation.

Ooooh! Burn!

It was a premium insult.

YMMV

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 28013
  • Age: -999
  • Location: Seattle, WA
Re: What will the next 10%+ correction look like?
« Reply #151 on: May 06, 2015, 08:18:16 AM »

Mustachians don't suffer from inflation because we readily switch to substitute goods.  For example, when the price of beef went up earlier this year, I just started drinking gasoline.

You may not suffer from inflation, but you will surely suffer from inflammation.

Ooooh! Burn!

It was a premium insult.

YMMV

You think it varies?  It was a high octane burn!
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

brooklynguy

  • Handlebar Stache
  • *****
  • Posts: 2207
  • Age: 39
Re: What will the next 10%+ correction look like?
« Reply #152 on: May 06, 2015, 08:20:51 AM »

Mustachians don't suffer from inflation because we readily switch to substitute goods.  For example, when the price of beef went up earlier this year, I just started drinking gasoline.

You may not suffer from inflation, but you will surely suffer from inflammation.

Ooooh! Burn!

It was a premium insult.

YMMV

You think it varies?  It was a high octane burn!

I'd keep this pun chain going, but I'm running on empty.

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: What will the next 10%+ correction look like?
« Reply #153 on: May 06, 2015, 09:06:49 AM »

Mustachians don't suffer from inflation because we readily switch to substitute goods.  For example, when the price of beef went up earlier this year, I just started drinking gasoline.

You may not suffer from inflation, but you will surely suffer from inflammation.

Ooooh! Burn!

It was a premium insult.

YMMV

You think it varies?  It was a high octane burn!

I'd keep this pun chain going, but I'm running on empty.

This pun chain's a gas, but shockingly, I drive electric. The experience gives me a real charge.
http://forum.mrmoneymustache.com/share-your-badassity/nissan-leaf-almost-paying-me-to-drive-it/

foobar

  • Pencil Stache
  • ****
  • Posts: 731
Re: What will the next 10%+ correction look like?
« Reply #154 on: May 06, 2015, 09:25:46 AM »
Medical care is the other big one. Even if prices don't go up, you getting older can cause your costs to go up (obviously ACA makes this extra complicated).

Minor quibble. The ACA actually makes medical care dramatically less complicated. However, the partisan drama around the ACA makes it somewhat risky to rely on the continued existence of some of its provisions.

No ACA make the situation more complicated in predicting what will happen to your costs.. In the old days your rates would go up. It was a given. With ACA they might stay the same if the government subsidy takes care of the increase in premium. And yes trying to figure out what the healthcare situation will be in 5 years (much less 30 years)  is taking a huge leap of faith.  Early retirees are sort of exploiting a loophole (nobody really thinks that people with a million dollars in assets  who chooses not to work should be getting subsidized health care) but it will be one that is hard to close as adding asset based testing (see FASFA) is pretty complex.

Gotta disagree here. I said that if the ACA stays as is, you have no complication. I don't think that can be disputed. As is, the tax credits explicitly limit your premium cost to a percent of your income. And out-of-pocket max is also limited to inflation. This makes healthcare very non-complicated to plan for under current law.

Without the ACA you could never save enough to be certain that you had medical expenses covered (recision, pre-existing conditions, lack of guaranteed issue, etc)--which makes your savings calculation incredibly calculated.

The political uncertainty is the problem.

We are saying the same thing. Without an ACA subsidy, your health care costs change with medical inflation and your aging. With ACA your health care costs change with inflation (NOT medical inflation) and aging (in most states). But if you are out of the subsidy range, you are back to your costs increasing with medical inflation.  ACA is better but less predictable. Without it, you always pay medical inflation. With it, you can pay either medical or normal inflation depending on what your income does.

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: What will the next 10%+ correction look like?
« Reply #155 on: May 06, 2015, 09:34:41 AM »
We are saying the same thing. Without an ACA subsidy, your health care costs change with medical inflation and your aging. With ACA your health care costs change with inflation (NOT medical inflation) and aging (in most states). But if you are out of the subsidy range, you are back to your costs increasing with medical inflation.  ACA is better but less predictable. Without it, you always pay medical inflation. With it, you can pay either medical or normal inflation depending on what your income does.

I think we're on the same page. Since you can control your income to a large degree (and generally within a range less than 400% FPL), you can control that variable. In the worst case, you're making "too much" money and can afford whatever the premiums are.

Pooperman

  • Magnum Stache
  • ******
  • Posts: 2973
  • Age: 29
  • Location: North Carolina
Re: What will the next 10%+ correction look like?
« Reply #156 on: May 06, 2015, 01:28:26 PM »

Mustachians don't suffer from inflation because we readily switch to substitute goods.  For example, when the price of beef went up earlier this year, I just started drinking gasoline.

You may not suffer from inflation, but you will surely suffer from inflammation.

Ooooh! Burn!

It was a premium insult.

YMMV

You think it varies?  It was a high octane burn!

I'd keep this pun chain going, but I'm running on empty.

This pun chain's a gas, but shockingly, I drive electric. The experience gives me a real charge.
http://forum.mrmoneymustache.com/share-your-badassity/nissan-leaf-almost-paying-me-to-drive-it/

That's a shocker.