Comments on: The Reality of Negative Real Interest Rates http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/ Moving beyond the basics Thu, 04 Dec 2008 06:49:05 +0000 http://wordpress.org/?v=2.2.2 By: Andy http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-20103 Andy Mon, 10 Mar 2008 00:31:31 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-20103 Real rates on 5-year TIPS are negative. You have to go out 10 years to get positive real return. Real rates on 5-year TIPS are negative. You have to go out 10 years to get positive real return.

]]> By: Sunday Morning Link Love | I've Paid For This Twice Already... http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17520 Sunday Morning Link Love | I've Paid For This Twice Already... Sun, 17 Feb 2008 15:50:01 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17520 [...] Personal Finance: The Reality of Negative Real Interest Rates. Argh. Yikes. Help [...] […] Personal Finance: The Reality of Negative Real Interest Rates. Argh. Yikes. Help […]

]]> By: Weekend Edition: | Fiscal Musings http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17390 Weekend Edition: | Fiscal Musings Sat, 16 Feb 2008 13:05:15 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17390 [...] Advanced Personal Finance has a great post up about the reality of negative real interest rates. I especially like the fact that it was looked at from multiple points of view for people in [...] […] Advanced Personal Finance has a great post up about the reality of negative real interest rates. I especially like the fact that it was looked at from multiple points of view for people in […]

]]> By: Connie http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17370 Connie Fri, 15 Feb 2008 20:06:24 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17370 Number 3 is a good point for me. I need to start investing more for retirement and now is an especially good time to do so. Number 3 is a good point for me. I need to start investing more for retirement and now is an especially good time to do so.

]]> By: KMC http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17355 KMC Fri, 15 Feb 2008 12:08:29 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17355 @ Mondo - I'll try to dig around and find out how often this situation has happened. @ Jeff - You're right. I did leave out taxes. Like you say, that makes it even worse. @ Mondo - I’ll try to dig around and find out how often this situation has happened.

@ Jeff - You’re right. I did leave out taxes. Like you say, that makes it even worse.

]]> By: Jeff http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17193 Jeff Thu, 14 Feb 2008 02:40:13 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17193 Great post. And it's even worse than the post indicates. Even though you are investing at a negative real interest rate of 0.7%, the tax laws treat you as if you made 3.4%. In other words, while you are really losing 0.7%, the tax laws think you are making 3.4%. After subtracting taxes, your real rate of return is even more negative than 0.7%! Great post. And it’s even worse than the post indicates. Even though you are investing at a negative real interest rate of 0.7%, the tax laws treat you as if you made 3.4%. In other words, while you are really losing 0.7%, the tax laws think you are making 3.4%.

After subtracting taxes, your real rate of return is even more negative than 0.7%!

]]> By: Mrs. Micah http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17175 Mrs. Micah Wed, 13 Feb 2008 23:32:39 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17175 I think #4 is possibly the best point. This can be a discouraging time---but losing money through some high-risk investments is worse than losing a bit through negative interest. I think #4 is possibly the best point. This can be a discouraging time—but losing money through some high-risk investments is worse than losing a bit through negative interest.

]]> By: Mondo http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17161 Mondo Wed, 13 Feb 2008 22:10:32 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17161 What's the historical view? How often does this happen, and how long does it last? It may not be worth trying to time the economy and do anything that can't easily be undone (like TIPS). Also, conspicuously missing from the list is: spend less and save more to compensate for the erosion of power of your emergency fund. What’s the historical view? How often does this happen, and how long does it last? It may not be worth trying to time the economy and do anything that can’t easily be undone (like TIPS).

Also, conspicuously missing from the list is: spend less and save more to compensate for the erosion of power of your emergency fund.

]]> By: SingleGuyMoney http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17115 SingleGuyMoney Wed, 13 Feb 2008 13:54:41 +0000 http://advancedpersonalfinance.com/the-reality-of-negative-real-interest-rates/#comment-17115 Yeah, it sucks being a saver and having alot of cash in the bank when rates are dropping. I agree the best thing to do is payoff debt and I plan to payoff my car loan in the next few months. Yeah, it sucks being a saver and having alot of cash in the bank when rates are dropping. I agree the best thing to do is payoff debt and I plan to payoff my car loan in the next few months.

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