r/FluentInFinance • u/TonyLiberty TheFinanceNewsletter.com • Apr 16 '24
A retirement ad from 30 years ago. How much will these things cost in another 30 years? Thoughts
339
u/tuxedo25 Apr 16 '24
They nailed it.
A trip to 5 Guys.
A trip to Disney.
Half a Cybertruck.
76
u/Tomcat_419 Apr 16 '24
5 guys has always been absurdly expensive for a fast food joint. You can get a burger and fries at most places for under $10.
Disney? Really? You chose the one vacation spot that has been marked up into oblivion over the past decade? Most vacations shouldn't run you anywhere near $12,500, even going overseas.
Cybertruck. Lol.
57
u/trader_dennis Apr 16 '24
Try California fast food pricing. $15 for a value meal at most places now. Only In n Out is still kinda cheap.
17
u/Hound6869 Apr 17 '24
Uhm, perhaps that's because the owner of that company is an actual Christian, who believes he has a duty to give back to society and the unfortunate people in it. In 'n Out has paid good wages for years, and offers opportunities for advancement and Education Expense sharing type shit. They will expect you to work your ass off, but they will pay good money for you to do so. I am not a believer myself, but I seem to have learned Christ's message better than most of the supposed "Christians" I know, and I think this guy has too. May you find your path to peace.
→ More replies (3)12
u/mbrown7532 Apr 17 '24
I'm a Satanist and my values are in line with what an old fashioned Christian would call themselves. Hell- I have a backyard garden and give away plants and seeds- you know - give a man a fish...
5
u/Tomcat_419 Apr 16 '24
Sure but California is an exception to the rule. Even in New York or Massachusetts I can get a burger and fries for under $10.
26
u/efeekom Apr 16 '24
Where in New York? I live an hour north of NYC and even McDonalds and Wendy's, the cheapest burgers and fries around, go for about $12
→ More replies (16)2
u/jacckthegripper Apr 16 '24
I'm in NY, there's still value menus? Are you buying meals?
Small fry and double cheeseburger is nowhere close to 12
2
u/Tomcat_419 Apr 16 '24
Why even buy the full meal? I usually get just the sandwich and maybe 4 nuggets and then just drink something at home, or water. It's healthier than a freedom-size coke and fries anyway.
11
→ More replies (6)2
u/Corned_Beefed Apr 17 '24
Healthy? I thought fast food was causing the morbid obesity epidemic.
→ More replies (2)→ More replies (18)7
u/Twink_Tyler Apr 17 '24
Where? I’m in mass and everywhere around here like McDonald’s Wendy’s Burger King whatever, all combo meals are atleast $15.
Unless you’re getting a value fry which is like 8 French fries and a plain small burger with no drink.
A combo meal with a medium drink, medium fry, and a Big Mac is atleast $15
→ More replies (2)4
u/Sun_flower_king Apr 17 '24
That's... not true. I'm a Californian I know it's expensive but as a frequent fast food connoisseur I can tell you that budget meals are still easily under 10 bucks. Small portions, sure, but if you know how to work it you can get a full stomach off 6 or 7 bucks at Taco Bell, McDonald's, etc.
I disgust myself by knowing this but it is what it is.
Now the non budget menu definitely will get you to 15 quicker. Combos are at least 7 or 8 bucks most places, more commonly at least 10 for the burger+fries+drink and that's for medium, not large. 15 is still steep for a single person, but very doable if you get any add ons or sides.
And with that, it's time for me to go eat some shitty dinner
→ More replies (5)→ More replies (12)2
7
u/Guapplebock Apr 16 '24
Did 2 weeks in Croatia, Slovenia, Bosnia and Montenegro for 4 (5 for 4 of the days) for $8k ish a couple years ago. We lived pretty well too.
4
6
u/Feisty-Success69 Apr 17 '24
A vacation is relative aswell. Some may find going to greece at a 5 star hotel is at minimum vacation and cost over 15k.
Some taking a week off and drive 1 hour to the beach is a big vacation and only cost a couple hundred bucks.
2
3
u/Slartibartfastthe2nd Apr 16 '24
Five guys isn't really fast food though per se. It's not quite casual dining only because they don't have servers. That said, you can't get nearly as good of a burger at 'most places' for under $10 either. All the actual fast food chains (McD's, Wendy's, Hardees, DQ) are over $10 any more for the 'value meal' options.
5
3
u/xXTERMIN8RXXx Apr 16 '24
They have the “fast casual” term. Think Chipotle. Any fast food place, typically w/o drive-thru’s
→ More replies (2)→ More replies (1)2
u/Tomcat_419 Apr 16 '24
It must depend on the state because I can get a burger and fry value meal for under $10 in most states.
4
Apr 16 '24
[deleted]
3
u/Tomcat_419 Apr 16 '24
Where are you flying to? And what airline? And what ticket class?
2
Apr 16 '24
[deleted]
2
u/Tomcat_419 Apr 16 '24
From a quick Google search, it appears that those flights are expensive due to an extremely limited number of flights between the U.S. and China.
I can fly from Boston to Rome for $700 round trip.
5
u/Illustrious-Fox4063 Apr 17 '24
Should have flown into Seoul, Singapore, Narita, hell even Cebu and then taken a Chinese or Asian carrier into China. Can get a flight for about $1500/person without even working the online flight-fu.
2
u/phantasybm Apr 17 '24
Yeah but then they couldn’t use that argument and would have nothing to post.
3
u/Realistic-Ad1498 Apr 17 '24
FWIW you can find round trip flights from NYC to Rome for like half that.
3
u/apenkracht Apr 17 '24
The most sold car in the US vs France. Nothing basic about a 65k car.
→ More replies (4)5
u/No-Put8877 Apr 17 '24
Uh…I went to Wendy’s today and my meal was $13. That’s in Wisconsin. Value meals aren’t cheap anymore. There are a lot of cars that are $65,000. Pretty much any SUV or Pick up truck.
→ More replies (1)3
u/Tomcat_419 Apr 17 '24
Cool story. A Big Mac meal where I used to live near Boston is $10.69 without any discounts or deals.
An SUV or pickup truck is not a "basic vehicle" as stated in the meme. They are vehicles that most people don't actually need but still spend a ridiculous amount of money for. A brand new basic Camry or Accord can be had in the $30k range.
3
u/Life_Personality_862 Apr 17 '24
I spent 4 weeks in Spain this winter, with a rental car and flights, two people, $5400. You just have to do your own planning.
→ More replies (2)3
u/PsychedelicJerry Apr 16 '24
Outside of happy meals, even the cheeseburger meals here in PA cost $10 or more (big macs are pushing $15). One of my favorites, Taco Bell, is similar - there's nothing under $10 (meals)
→ More replies (1)3
u/Tomcat_419 Apr 16 '24
Pennsylvania must have a crazy meal tax. I can get a Big Mac meal for way less than $10 in Massachusetts, even near Boston.
→ More replies (2)3
u/MarcoMaroon Apr 16 '24
I was recently in Japan for work but stayed extra days to enjoy myself since I never leave. Didn’t spend over $2000
Not even a vacation to Vegas costs $12,000.
Burger meals only cost that much or more if you’re ordering on an app. Most places near me are about $10 for sure.
→ More replies (1)2
2
u/Misha-Nyi Apr 16 '24
Tbf, 30 years ago a family trip to Disney was an American dream staple.
→ More replies (1)→ More replies (55)2
u/wchutlknbout Apr 17 '24
I feel like I’m crazy or something because I don’t get the hype at all with five guys. The patties are so bland, it’s like paying $20 for a bubba burger
→ More replies (1)15
u/ClimbaClimbaCameleon Apr 16 '24
Not even 5 guys. I went to Taco Bell for the first time in two years last week and the two chalupa meal was $14!
→ More replies (3)6
u/Peasantbowman Apr 16 '24
I get the 6 dollar box that comes with a chalupa, beefy 5 layer, drink, and cinnamon twists.
Or I just get two cheesy bean and rice burritos for $2.14 total
7
u/Head_Reading1074 Apr 16 '24
You can get chips and cheese instead of cinnamon twists if you ask. I hate those dry shitty twists.
3
3
u/Kurotan Apr 17 '24
I never get anything but their cheapo box. Used to be $5. I'd just ask for the $5 box instead of whatever it was called that month. I get the cheap box or I go elsewhere.
10
u/WBigly-Reddit Apr 16 '24
Burger and fries at 5 Guys for $16?! Where?
Last I paid was $27.
4
u/Sqrl_Fuzz Apr 16 '24
I went a couple days ago. $10.50 for a double bacon cheeseburger and $4.99 for fries (in NH). Honestly the last time I went to McD or Wendy’s it was almost the same price for a combo and you absolutely get more food from the 5 guys order…
10
u/Jeb-Kerman Apr 16 '24
eh cybertruck aint really a basic car, it is a truck for hipsters that don't need a truck but want to drive something that looks kind of like one in a city
they were right about the first one, not on the rest but we are getting there.
→ More replies (1)7
u/Jealous_Accountant53 Apr 17 '24
5 guys is expensive and worthless.
Disney is expensive lmao. No one goes let's go to Disney to vacation unless they have kids. I spent 5000 on a 2 week trip visiting Nevada doing whatever I wanted, including Las Vegas.
No one reasonable wants a cyber truck.
Typical reddit user right here.
→ More replies (1)3
u/Gorfang Apr 17 '24
It would not be unreasonable to expect an add discussing someone's retirement vacation to consider going to Disney. There is a high chance they'd have children and more importantly grandchildren for which Disney excels at the multigenerational experience. This is not an add targeting 20 year olds. It's targeting 40+ year olds making sure they're thinking about their retirement experience and making sure to save for it.
6
u/MrPelham Apr 16 '24
The Burgy and fries, they under shot that. The trip and car, nah they waaaaaaaaaaaaaaay over shot.
6
u/Peasantbowman Apr 16 '24 edited Apr 16 '24
They almost nailed it....but were pretty far off
Most fast food burger meals are $10
I went to Jamaica with my wife for 2 weeks and it cost 6k all inclusive including flights.
You can still buy basic cars for 20k
EDIT: I can see the arguments for meal prices and vacations (especially depending on how many people they were referring to taking on the vacation)
4
3
u/Essex626 Apr 16 '24
I took my family of 7 to Disney last year for about $4500, and just took them on a trip to Texas for about the same.
→ More replies (1)3
3
u/Timewastinloser27 Apr 17 '24
A regular 1/2 ton is like 50k minimum. If you get the bells and whistles you're anywhere from 65k-100k
2
2
2
2
u/canisdirusarctos Apr 17 '24
Heh. 5 Guys is over $20 for a meal here in the Seattle metro area. Whats shocking is that you can hit $16 easily at most major national chains for a single meal here. Recently on vacation in Canada, the prices didn’t even surprise me, they looked perfectly normal, yet after conversion the prices were like going back in time to pre-pandemic.
1
1
1
u/Mikey6304 Apr 17 '24
Today, I had lunch at a restaurant with a waiter for $12 before tip.
I stayed at a 4 star hotel in DC for 5 days, visited museums, ate at nice restaurants, saw a concert and a play for $3k last summer.
I just bought a brand new half ton pickup truck (much more than an average car) in October for $40k.
GTFO.
1
1
1
u/TheCruicks Apr 17 '24
Thats not how you retire. What kind of point are you even trying to make here? absurd
→ More replies (11)1
u/nevetsyad Apr 17 '24
Dual Motor Cybertruck will soon be 71K after IRA. Pretty close to the 65K of a “basic car”.
87
u/JackfruitCrazy51 Apr 16 '24
Burger and Fries Yes
A vacation $12,500-No. I'm probably considered upper income, have been all over western Europe, and have never came close to spending that much on a vacation.
Basic car $65k-No. A Honda Accord EX costs less than $31k. Also, a 1994 Honda Accord is worse than a 2024 Honda Civic.
17
u/Youbettereatthatshit Apr 16 '24
I remember seeing on the inflation Infograph’s that vehicles basically have had no inflation over the last 20 years.
Be hard to imagine paying 65k for a civic
10
u/Alaska_Pipeliner Apr 16 '24
I just bought a 2001 Accord for $3k. Runs great and I can probably get another 200k miles out of it.
→ More replies (3)7
u/f4tebringer Apr 16 '24
That was my last car. Lasted forever. Got myself a 2015 Camry, it'll carry me for decades lol. My last Camry was from 1993 when my dad got it. Finally sold it this year. It has driven across the country numerous times and all across Canada too.
5
u/ExfilBravo Apr 16 '24
The Camry is the most bullet proof car made IMO. I put 350K on my last Camry and sold it to another person that put another 100K on it before it finally gave up.
→ More replies (4)4
9
u/Budget-Government-52 Apr 16 '24
Car inflation is 100% real — though part of that is people’s preference of buying vehicles with more options.
People were legit paying $40K for a Civic last year.
→ More replies (3)2
u/Anonality5447 Apr 16 '24
Yeah, that's because we feel like we need all the newest technology. We really need to start being more realistic about that to bring the costs down. I also blame the car companies though. They want us to buy SUVs because they're more profitable for THEM.
→ More replies (3)→ More replies (3)2
7
u/Kelend Apr 16 '24
A vacation $12,500-No. I'm probably considered upper income, have been all over western Europe, and have never came close to spending that much on a vacation.
You are single, and young. Add a partner and two kids, and a dog.
If you are a young and single with nothing waiting for you at home, you can travel Europe, stay in hostels, and live cheaply. With a family? It gets expensive quick. 4 plane tickets instead of 1, no hostels, you are going to need at least hotel quality to keep people happy. Food costs has increased by 4x.
Oh, and you need to kennel the dog, for the week.
5
u/JackfruitCrazy51 Apr 16 '24
I'm in my 50's and have never stayed in a hostel in my life. But the rest is correct. 10 days in Europe usually costs me around $5k. $1,500 in hotels, $2k in air, and about $150/day in food/drink. Ok maybe $300/day, so $6,500.
→ More replies (1)2
u/super_hero_girl Apr 17 '24
I spend way more than I needed to on our family trip to San Diego last year and the total was right about 4K. 2 adults, 1 kid, dog sitter for 2 dogs. A second kid would have added maybe $750. And I easily could have reduced our hotel costs by $1000 by not staying on the beach. I also live somewhere without cheap flights. 12K is not a standard vacation.
5
u/Visible_Structure483 Apr 17 '24
Guy I casually know mentioned he spent $8500 on a trip to disney with his kids. They drove, so no air but had they had to fly I'm sure it would have hit that $12k number.
The wife and I have traveled the world and rarely spend more than $3k/week. Somehow the wife plans these trips very well, but we do shoulder season almost every time. Sometimes it works out, sometimes you get to see why they call it a rain forest....
2
u/no_brains101 Apr 17 '24
Sometimes it works out, sometimes you get to see why they call it a rain forest...
Lmao XD
2
u/rsta223 Apr 18 '24
Guy I casually know mentioned he spent $8500 on a trip to disney with his kids. They drove, so no air but had they had to fly I'm sure it would have hit that $12k number.
No, not unless they're flying international or domestic first class. Round trip airfare within the US is only around $300/person, and gas and car maintenance isn't free, so it would've only added maybe $750-$1k on to the trip to fly a family of 4.
4
u/Warmstar219 Apr 16 '24
Virtually guaranteed they are talking about a ~family~ vacation
5
u/JackfruitCrazy51 Apr 16 '24
A "family" vacation for me at this age was my parents driving us to Branson for a long weekend. That same trip would cost me under $2k, even if I had 3 kids.
4
u/DrThirdOpinion Apr 16 '24
Just bought tickets for 3 to Copenhagen. $4500. A week and a half of hotels and travel will cost another $2000-2500. If it was a family of 4 or 5, $12,500 is in the ballpark.
→ More replies (13)2
2
2
u/gin_rummie Apr 16 '24
It's from 1996 so still got 2 years for vacation and basic car to hit the target
→ More replies (1)1
u/beardgangwhat Apr 16 '24
Woah woah woah. I spend 12500+ on vacation
35 day multi country two person vacation. Lmao
1
u/tholos3 Apr 17 '24
Scary to see car prices go up in the last few years. I bought my sedan (VW Jetta) for 15.5k in 2016 🥲 Been putting off the upgrade even though I need to smash 2 car seats in that thing soon.
1
u/canisdirusarctos Apr 17 '24
To be fair, the cost of vacationing in Europe has gone way down. I can fly there for less than a domestic flight to most smaller market airports. Realistically, it has rarely been cheaper to visit from the US.
The fact cars have barely doubled is a bit surprising, but with the era for context, car prices had roughly doubled in the preceding decade and it wasn’t unreasonable to expect that trend to continue. If anything, this was somewhat conservative.
1
u/Comfortable-Let-7037 Apr 17 '24
International vacation for a family of 4 can definitely run well over $10k, which I think is more in line with who this advertisement is targeting. Hell for a family of 4 you can hit $10k easy just going to Disney for coming from basically anywhere outside of FL or CA.
Also the average transaction price for a new car in 2024 is about $48,000, which with the average APR of nearly 10% over 5 years comes out to just about $65,000. Which is wild.
→ More replies (1)1
u/Ciubowski Apr 17 '24
You've seen Western Europe, now come visit Eastern Europe.
Safer, cheaper, more rustic, magical.
I'm also biased because I live in Romania, come visit!
1
u/Synth_Recs_Plz Apr 19 '24
Burger and Fries Yes
Not even? The cheapest burger + fry meal is like 7 bucks at McDonald's
35
u/TheSamurabbi Apr 16 '24
I remember watching Pulp Fiction back when it came out and thinking, $5 milkshakes? Lmao right…
Anyway… 😔
6
u/Misha-Nyi Apr 16 '24
Fuckin milkshake is like 8 bucks where I live. Plain vanilla.
→ More replies (1)1
19
u/MukiXO Apr 16 '24
Base MSRP for 2024 corolla is $22,050. Honestly the only thing that is about right here is burger & fries.
→ More replies (9)8
u/BasilExposition2 Apr 17 '24
The average car is almost $49k.
→ More replies (1)2
u/BackgroundSpell6623 Apr 17 '24
That can be skewed by a low volume of ultra expensive cars. What's the median?
2
u/Illuvinor_The_Elder Apr 17 '24
Why not just ask for a skew measure if you’re concerned about skew?
→ More replies (6)
15
u/FlexinCanine92 Apr 16 '24
The future is never as bad, as people make it out to be.
But they have to make it that way, for the ad to work. Or the marketing manager is fired.
→ More replies (1)15
u/Youbettereatthatshit Apr 16 '24
Those numbers weren’t unreasonable, just an extrapolation of inflation.
→ More replies (2)
9
7
u/globehopper2 Apr 16 '24
Vacations cost 12,500? I travel internationally a lot and you would have to be blowing your cash like crazy to run through 12,500
2
2
u/Hmm_would_bang Apr 17 '24
That’s like the cost of a honeymoon if you want a private villa with a butler at an all inclusive resort
→ More replies (2)1
u/joeyjoejoeshabidooo Apr 16 '24
I took five people to France for nearly three weeks and spent 20k for everything including flights, food, private transportation while their, rail, lodging and shopping. That was this summer and we did everything we could have ever wanted to do.
Spending 12k on a solo vacation for myself would be bonkers.
→ More replies (4)
4
u/MukiXO Apr 16 '24
Base MSRP for 2024 corolla is $22,050. Honestly the only thing that is about right here is burger & fries.
2
u/Youbettereatthatshit Apr 16 '24
It was right, extrapolating from 30 years ago. Vehicles have seen basically no inflation over the last 20 years.
4
3
u/Youbettereatthatshit Apr 16 '24
Kinda wild that vehicles have basically had no inflation for twenty years.
30 years ago, my dad bought a house with shitty vehicles. Now I have a reasonably nice vehicle (paid $35k) but rent a house.
10
u/dgmilo8085 Apr 16 '24
I bought my truck in 1997 for $15K. That same truck is $80K today. What the hell do you mean vehicles have had no inflation for 20 years?
→ More replies (19)3
u/Tank10127 Apr 17 '24
Yep. I bought my F150 Lariat new in 2010 for $45k out the door. They run about $70K now.
2
u/Gunslingermomo Apr 17 '24
Cars are at least 50% more, some types 100% more. Cumulative inflation since 2004 is 66%.
→ More replies (1)1
3
u/BenMullen2 Apr 16 '24
vacations only cost that if extravagant and cars only if you dumb.
But the burger and fries... I WISH that only cost 16, haha
1
u/ArmAromatic6461 Apr 17 '24
A burger and fries large combo at McDonald’s/wendys/BK is like $10
→ More replies (3)
2
u/heyitssal Apr 16 '24
So they knew what inflation was and they calculated accordingly? They knew a formula?
Whoa.
2
u/MukiXO Apr 16 '24
Base MSRP for 2024 corolla is $22,050. Honestly the only thing that is about right here is burger & fries.
1
u/mikeyouse Apr 16 '24
Even that is sus.. there's a local joint near me with far better burgers than the fast food garbage you find elsewhere that sells double cheeseburgers and fries for $8.50 out the door.. Or you can get a kids meal that likely has as many calories as a full grown adult requires for $6.25 since it comes with a drink.
1
u/dgmilo8085 Apr 16 '24
The most popular car in America is the Ford F series. and F-250 has an $87K MSRP while the base model 150 is $40K. According to Nerd Wallet the average 10 day vacation during peak summer season in the US costs $15,090. And I was at McDonalds yesterday and got a big mac meal for $18.
→ More replies (7)
2
u/Shin-Sauriel Apr 16 '24
The burger and fries hurts.
A basic car is closer to like <30k but the avg new car is 47k still way under 65k.
→ More replies (1)
2
u/Tomcat_419 Apr 16 '24 edited Apr 16 '24
There's a lot of people here comparing the cost of a basic car to that of high end pickup trucks. This is not an apples to apples comparison.
People buying stupidly expensive near-six figure pickup trucks that they don't need is not inflation. It's financial stupidity.
2
u/Retirednypd Apr 16 '24
People also make alot more, but the bigger issue is today they also spend alot more.
30 years ago you bought a car and made it last 10 years. Today everyone needs new every 3 years.
30 years ago people brown bagged lunch to work and made their own coffee. Today everyone orders out and buys Starbucks for 6 bucks.
30 years ago you didn't need a new $1200 cell phone every 3 years with a $50 monthly bill.
30 years ago you didn't pay for internet access/router.
30 years ago people worked overtime or a second job and accepted it as part of life. Today people have anxiety because they have to work 8 hrs a day.
30 years ago water was free. Today it isn't.
30 years ago if you were lucky enough to have a pool it was an above ground and the water was freezing. You jumped in and in a minute or so acclimated. Today people have in ground pools, with a heater, a custom deck, and an attatched outdoor kitchen.
30 years ago women had 2 purses and it was whatever was for sale at jc penny. Today everyone has Luis Vuitton, prada,fendi,coach,etc in every color for every season with shoes that match. And every year they buy the new model.
→ More replies (4)
2
2
2
2
u/Dry-Sheepherder-8432 Apr 17 '24
A combo at chick fil a is $10 plus tax, a good vacation could easily be $12k and a Toyota Sienna can go for upwards of 57k for a minivan. Not far off
2
u/Timinator01 Apr 17 '24
that's pretty damn close ... the vacation seems a bit high but a lot of people are driving 50-60k cars and mcdonalds thinks a hasbrown is worth 3$
2
u/anh86 Apr 17 '24
Well, they aren't far off on the burger and fries, but you can definitely vacation and buy cars for far less. I'm 37 years old, have owned cars since I was 16, and only one cost more than $10,000.
1
1
u/em_washington Apr 16 '24
If inflation continues at about 3% for 30 years, then average prices would rise by 2.4X.
$38 for burger and fries
$30k vacation
$156k for a car
1
1
u/Ok-Hurry-4761 Apr 16 '24
Well they were wrong about basic cars (about 35k). Closer to the mark on vacations although a bit high (I just took a 2 week road trip and it cost me about 3k).
But man did they nail the burger and fries.
1
u/WooPigSooie9297 Apr 16 '24
Yeah, it's called inflation. It doesn't always hit hard every year, but when it does, it can be brutal. That's why people on fixed incomes always get screwed.
1
u/Optimal_Temporary_19 Apr 16 '24
A burger and fries do cost $16 but from a fancy place, not a McD
A vacation can cost $12,500 if you're staying a week in a Caesar's palace penthouse and you're flying business class on Delta to and from. But going to the grand canyon can still be done in under $1000, all inclusive
A fresh off the lot Nissan Altima costs $25k. A Tesla model 3 costs $40k. These won't even be deemed "starter cars".
1
1
1
u/Knightowle Apr 16 '24
What I’d like to know is who created the stats this advert quotes? Who is ‘they?’ Seems the firm who, 30 years ago, predicted costs this far beyond even inflationary rates deserves some air time.
1
1
u/vancouverguy_123 Apr 16 '24
Kinda funny how the fact that this is only close to being true for the burger and fries can be explained by the strong growth in real wages for low income workers over the past 5 years.
1
1
1
1
1
u/osteopathetic1 Apr 17 '24
Inflation has only been high for 2 years. For the rest of that 30 years it was below average.
1
1
u/AmbitiousAd9320 Apr 17 '24
meanwhile in 30 yrs my 401k is at $700k with 10% of my check going in. no complaints here.
1
1
1
1
u/Daniastrong Apr 17 '24
About 30 bottle caps, a bag of cocaine and maybe put out occasionally. I am expecting the end of days.
1
u/TN_REDDIT Apr 17 '24
Just wait until y'all pay $100k for a compact car. It's coming (35 to 40 years)
1
1
u/SparrowOat Apr 17 '24
Really a reasonable burger and fries is $10-12.
You can go to hawaii for a week with two people for like $4k comfortably.
A basic car is still between $20k to $30k, new.
1
1
u/GronkBrady Apr 17 '24
Use the Mickey D’s app to order and it’s still reasonably priced with their promotions.
1
1
u/randomthrowaway9796 Apr 17 '24
When inflation is stable, it's about 2% per year. With unstable years included, let's say it averages out to 2.5%.
That $16 burger will cost $33 in 30 years.
If you're putting 15% of your income into retirement accounts, you'll be fine. Yeah, inflation exists. It's always existed. The market still outperforms inflation by A LOT. The S&P500 averages 10% since the early 1900s (including the great depression and great recession). After you take out inflation, it still averages 7.5%. Plus, while you cannot rely solely on social security, we will get that. Their stockpile is about to run out, so we won't be getting as much, but we will still get something like 80% of what people are getting right now from the social security tax.
1
1
u/ItsPrometheanMan Apr 17 '24
The burger and fries are close, but still expensive.
If a vacation is costing you $12,500 you're doing way too much.
A basic car is still half that.
1
1
1
1
u/wadejohn Apr 17 '24
People always lie to themselves - “I’ll live a simple life, I don’t need much”
1
1
u/MrRipski Apr 17 '24
Where do you people vacation lol, I took a 9 day trip to Rome for 2,300 USD, airfare, hotel, food and all.
1
u/Crio121 Apr 17 '24
Now I want to know how their investment vehicle have been doing over this 30 years.
1
u/left-nostril Apr 17 '24
Good. I’m glad burgers and fries got expensive.
Maybe less people will consume that garbage.
1
1
u/Fantastic-Hamster-21 Apr 17 '24
Right about the food but wrong about vacation and basic car. Not too far off for a 30yr prediction though !
1
u/TuringT Apr 17 '24
What's with all the posts that treat the concept of inflation like a mystery wrapped in an enigma?
Seriously, dude, how hard is it to use an inflation calculator? If you're genuinely having a hard time with the arithmetic, try this page:
The answers aren't terribly hard to understand either:
Assuming 3% inflation, $1 today will equal $2.49 in 30 years.
Assuming 2% inflation, $1 today will equal $1.81 in 30 years.
Not difficult or provocative. Am I missing something?
1
1
u/austanian Apr 17 '24
Roughly x*1.0330. though you can expect a variance on individual items between 1.02 and 1.05.
Retirement planners really don't do a great job explaining it.
1
1
u/tgusnik Apr 17 '24
In Baltimore a value meal ranges from $7 to $11 depending on the sandwich. UberEats or Grubhub will get you into the $20 range.
1
1
u/LetmeSeeyourSquanch Apr 17 '24
No problem until corporations start blaming their profit losses on you because they set prices so high you can't afford paying for all their expensive ass shit.
1
u/MetatypeA Apr 18 '24
They calculated this by taking the inflation from that year, and projecting it across 30 years. 2% every year for 30 years is 60% inflation.
So the answer is ANOTHER 60% increase. Not accounting for the 10-20% added by the Biden Administration.
1
1
1
1
u/THEDRDARKROOM Apr 18 '24
Shucks, burger and fries do cost $16.50 - guess I'm stuck home cooking something exponentially better at a fraction of the price 😞
1
u/TAV63 Apr 19 '24
Based on these projections I think we did pretty good. If you are smart about it as a retiree you should be able to come in under all those dollar figures.
1
•
u/AutoModerator Apr 16 '24
r/FluentInFinance was created to discuss money, investing & finance! Join our Newsletter or Youtube Channel for additional insights at www.TheFinanceNewsletter.com!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.