Inflation and the osage -- a little financial information

 

What do I do with inflation and interest rates and my savings?

Well I don’t know but you might consider the Series I Savings Bonds.  Here are the restrictions but right now they are paying 9.62% for the initial rate sold from May through October 2022.  You are required to hold them for one year and they pay interest for up to 30 years or until you cash them in, after the one year.  The interest changes each 6 months.  An example:  if you cash it in in 18 months you get paid the interest on the first 15 months.  The interest is compounded semi-annually.  The interest rate changes each 6 months based on a formula tied to inflation.  If you want more detail information, go to the Treasury’s site.  There is an annual limit of $10,000 per year per person.  (treasury-direct.gov).  strangely enough, you can purchase an additional $5,000 per year in paper I bonds using your federal income-tax refund.  You can purchase them for friends, like me, relatives, and others.  If you purchase for a friend or family the limit is on them not the buyer.    If you find this too complicated call a financial advisor (not me as I am retired, however I will give you a few names to call).

Relative to the market, there are a lot of thoughts and ideas out there.  Fear is the biggest problem and if one looks to history the answer is simple, at least for me.  I am staying put in the market with the money I do not need for the next two years.  This is deemed part of the bucket theory and has worked well for me and many friends. 

Now to just assist a little money saving ideas:  for me getting rid of cable was an easy savings of about $150 per month.  I replaced it with PLUTO which has about 250 channels and is free.  So what is the downside?  Commercials and no recording of shows.  What is the upside?  $150 towards retirement or debt or something fun to do with my family.  You decide but most of all do something!  As my dad, Cliff Olson, said “let’s do something, even if it is wrong”.  My dad was a blessing and a wonderful teacher of the basics in life.  He never said to keep it simple but, that is what he did.  He taught by example.

So what do you learn in the Osage?

·       If you take idleness and turn it into action you will never regret (never might be too strong)

·       Even the Bible tells us to not be idle Proverbs 16:27. In The Living Bible, it says, “Idle hands are the devil’s workshop; idle lips are his mouthpiece.”

·       to be prepared, you have to prepare … go figure

thanks for listening,

gary@mylifelegacy.co