That’s like the annual Texas property tax payment on a $500K home.
intercst
This is why I asked Wendy if her LTC policies were indexed for inflation.
DB2
3 Likes
Most of the time inflation is low enough that we don’t notice it or even think about it. But with even modest rates of inflation prices can double over 20 years.
The insurance you thought would protect your assets might not do the job you intended it to when you bought it. This is an major overlooked problem with annuities which are never inflation adjusted unless you pay an amazing amount of money for an inflation adjustment, and even then you have to guess the inflation rate ahead of time.
This is also why I’m not a major fan of paying off the mortgage early–assuming the low rates available in the 2000s. Inflation is busy cutting your payment in half. So why use fully valued current dollars to save puny, inflation ravaged dollars in the future?
7 Likes
The middle class is under economic siege via healthcare & university education inflation.
https://thehill.com/opinion/finance/591995-health-care-and-higher-education-key-drivers-of-long-term-inflation/
Health care and higher education: Key drivers of long-term inflation
The linked graph shows that inflation (CPI) over 10 years (6/14 - 6/24) was 32%. Healthcare inflation over the same period was 30%. Not significantly different.
DB2
Fascinating chart. The endeavors that have shown big price increases, are the “service economy” that we were told, forty years ago, was the future.
Steve
1 Like
It is. For the JCs.
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