Inflation

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Jun 23, 2009 2:04 pm

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...
Jun 23, 2009 4:10 pm

Government makes things confusing?  Surely you can't be serious.

Jun 23, 2009 4:13 pm

Track your normal expenses and compare them from last year's prices.  When you compare them and get an average, you must weight the bigger expenses accordingly, as a percentage of their overall outlay.  I know of someone who did this, and their personal inflation rate was 9.3%.  I wouldn't bother doing this for a client, however. 

Jun 23, 2009 4:15 pm

I did my own inflation calculation the other day, it showed some good signs for me. My general usage of food and fuel has not changed, and their prices are well documented. The real revelation in my financial situation lies in the fact that I started hitting the strip club at 11am instead of 11pm. That combined with the fact that those providers have scaled back their cost for service means that the goods and services in my financial picture are in a precipitous deflationary spiral. 

Yay!

Jun 23, 2009 4:19 pm
SometimesNowhere:

I did my own inflation calculation the other day, it showed some good signs for me. My general usage of food and fuel has not changed, and their prices are well documented. The real revelation in my financial situation lies in the fact that I started hitting the strip club at 11am instead of 11pm. That combined with the fact that those providers have scaled back their cost for service means that the goods and services in my financial picture are in a precipitous deflationary spiral. 

Yay!

 
Yeah, but what do you get for your dollar at 11am as opposed to 11pm?  I would rather see the increased costs at 11pm versus the "had a baby now has stretch marks and a gut with half a mouth full of teeth and tattoos covering 75% of a no good gonna make my yogurt shooter limp girl" at 11am.
Jun 23, 2009 4:44 pm
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

Jun 23, 2009 4:45 pm
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.
Jun 23, 2009 4:54 pm
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

Jun 23, 2009 4:54 pm

Fixed Annuity.

Jun 23, 2009 5:45 pm
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 
Jun 23, 2009 6:24 pm
deekay:

Fixed Annuity.

 
Those are great inflation hedges.  Make sure you do the ones with very long maturities, they work the best.
Jun 23, 2009 6:25 pm
snaggletooth:
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 
 
Did you and Tom have a falling out?
Jun 23, 2009 6:53 pm
snaggletooth:
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 



Have you told them what you do and ask them if that's what they want? Does that sound like I'm trying to convince anyone of anything? You know what I do well enough to know that I don't try to convince anyone of anything.

It sounds to me like you're trying to sell a VA with an income rider to people who like the safety of CD's and bonds. True?

Jun 23, 2009 6:54 pm
Sam Houston:
snaggletooth:
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 
 
Did you and Tom have a falling out?



Of course not.

Jun 23, 2009 9:02 pm
Sam Houston:
deekay:

Fixed Annuity.

 
Those are great inflation hedges.  Make sure you do the ones with very long maturities, they work the best.

 
At least they're gonna buy the fixed annuity from snags rather than go down the street and buy it from someone else.  Seems to me they don't want to have their money at risk.  As long as they understand the inflation risk they're taking, I'm ok with it.
 
Why do reps insist on treating their clients and prospects like they are mentally deficient?
Jun 23, 2009 9:55 pm
snaggletooth:
SometimesNowhere:

I did my own inflation calculation the other day, it showed some good signs for me. My general usage of food and fuel has not changed, and their prices are well documented. The real revelation in my financial situation lies in the fact that I started hitting the strip club at 11am instead of 11pm. That combined with the fact that those providers have scaled back their cost for service means that the goods and services in my financial picture are in a precipitous deflationary spiral. 

Yay!

 
Yeah, but what do you get for your dollar at 11am as opposed to 11pm?  I would rather see the increased costs at 11pm versus the "had a baby now has stretch marks and a gut with half a mouth full of teeth and tattoos covering 75% of a no good gonna make my yogurt shooter limp girl" at 11am.



To each his own. I guess if you want to see a woman you can't mistake for a buffalo, that's just your taste.

Jun 23, 2009 10:26 pm
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 



Have you told them what you do and ask them if that's what they want? Does that sound like I'm trying to convince anyone of anything? You know what I do well enough to know that I don't try to convince anyone of anything.

It sounds to me like you're trying to sell a VA with an income rider to people who like the safety of CD's and bonds. True?

 
Yes, I tell them.  If it's the CD buyers I've talked to lately, they don't feel comfortable in fixed or index annuities.  Try showing them a 5 year account, no way.  A 10 year account...forget about it.  There's just no helping them.
 
 
Jun 23, 2009 10:28 pm
Sam Houston:
snaggletooth:
Alice Cooper:
snaggletooth:
Alice Cooper:
snaggletooth:

Does anyone calculate the client's specific rate of inflation as opposed to using the standard 3%?

 
If half their expenses go to food and energy, a quarter to health care, and a quarter to other stuff, it seems you could really come up with a specific number which might be say 5%.  It doesn't seem that hard to do.
 
If you already do this, where exactly do you get the numbers?  I went to www.bls.gov/cpi, but the government makes everything so confusing...




Get a grip. Are you trying to help people get what they want or are you trying to convince them to do what you want?

 
I'm trying to convince them not to be in CD's or bonds for the next 30 years of their retirement.



You think they don't know that prices tend to rise? If you're trying to convince them of something, you're just like every other piker that's tried to get them to move their sh*t. You know better than that.

 
What?  If they already know that prices tend to rise, but are still hesitant to do anything but CD's, how is me trying convince them to look into an annuity being like every other piker? 
 
And since when is any one of us NOT trying to convince them of something?  You're trying to convince them of something too because 99.9% of the time they don't know what a FIA is. 
 
2 minutes ago, I got an email from a guy wanting to know our rates for a 6 month CD over $100,000.  This is a fairly common thing lately.  These geniuses want less than 1 year maturities so they can jump back into the market.  I can't compete on CD rates. 
 
Did you and Tom have a falling out?
 
Nope, we're tight.  Just a friendly discussion.
Jun 23, 2009 10:40 pm

Funny thing is, buying one-year CDs if inflation goes through the roof probably puts more money in your pocket than an EIE.