Re: Real Return Bonds - Availability from BMO

> 
> You can't know what return you will get, in nominal terms, because you
> cannot forecast inflation.  My bet is that, long run, with the Baby
> Boomers aging, the country cannot afford to have less than 2%
> inflation (there has to be a wealth transfer from the holders of fixed
> income assets and especially government debt, to borrowers) and so we
> will not have less than 2% inflation.
> 

While it is true with general inflation rate, you can forecast your
personal inflation rate.  I learned this from my own experience (I kept
a detailed expense record) for the past 15 years and noticed that even
with my frugal spending habits, my personal rate averages around 6%.  I
tried to keep it down to around 2 to 3% if I can and that usually means
lowering my lifestyle a bit without compromising a lot.  

An example for what I had been doing for awhile with movies is that, I
would write down the names of movies I would like to see today in a
notebook and then wait till it comes out on DVD.  I already have a
decent DVD setup at home anyhow.  If I want to save more, I simply wait
6 months longer unitl it becomes a 7 days rental where I can rent it
for $3.95 or less.  
I just saw Spiderman yesterday for the first time btw..
I only reserve my theatre outings to outstanding movies now, and even
then, my luxury of going out to movie theatres to see premiere showing
may end if prices keep going up.

I also buy quality grocery from organic outlets.  They cost more, but
they taste better and I feel better.
Sure, I can save a lot by going to President's Choice and buy the lower
quality stuff.  But what good is your wealth wihout your health to
spend on?

Our personal lifestyle ultimately dictate our personal inflation rate. 
I pay absolutely NO ATTENTION whatsoever with the 2% inflation rate
except if I need to borrow money which I don't.