Comments on: Inflation’s Bleak Prospects. . .in 1978 http://www.doughroller.net/personal-finance/inflations-bleak-prospects-in-1978/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: DR http://www.doughroller.net/personal-finance/inflations-bleak-prospects-in-1978/comment-page-1/#comment-8 DR Wed, 30 May 2007 02:37:13 +0000 http://doughroller.net/?p=7#comment-8 You raise a good point about how and to what extent one should factor predictions of inflation into retirement analysis. I thought the example of the cost of an education was interesting in that a four-year education has gone from $16,000 to $140,000 ($35,000/year) since 1978 (although there are less expensive alternatives to Georgetown). Of course, how many of us will be funding a four-year education in retirement? You raise a good point about how and to what extent one should factor predictions of inflation into retirement analysis. I thought the example of the cost of an education was interesting in that a four-year education has gone from $16,000 to $140,000 ($35,000/year) since 1978 (although there are less expensive alternatives to Georgetown). Of course, how many of us will be funding a four-year education in retirement?

]]> By: Canadian Dream http://www.doughroller.net/personal-finance/inflations-bleak-prospects-in-1978/comment-page-1/#comment-7 Canadian Dream Tue, 29 May 2007 16:15:15 +0000 http://doughroller.net/?p=7#comment-7 So using your tution example to get $16,000 up to about $35,000 requires an inflation rate of 2.75%. So that 6% they were predicting was out to lunch and goes to show that people that use a 4% inflation rate in their retirement calculations are just out to lunch. Thanks for the interesting article. CD So using your tution example to get $16,000 up to about $35,000 requires an inflation rate of 2.75%.

So that 6% they were predicting was out to lunch and goes to show that people that use a 4% inflation rate in their retirement calculations are just out to lunch.

Thanks for the interesting article.

CD

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