Shrinking Canadian dollar
Wondering how the state of the Canadian dollar will effect other Canadians travel plans. It has made our site rental jump from $3,200 American to a payment of $4,022.60 Canadian. ouch!
Forum Discussion
John&Joey wrote:I took an early retirement full pension offer in July, 1996. It was a very good package at that time but there has been a lot of life lived since then and that amount has lost it's shine. Fuel was in the $2.98 CND a gallon on July 1, 1996 and it is $6.56 CND this morning. The 1996 average retail cost of a dozen eggs was $2.85 CDN and is $3.87 CND this morning. Add 24% in exchange rate and that fixed income sure looks meager.her&I wrote:
...We also survived the $0.67 era but my fixed income value has eroded considerably since.
I saw this first hand with my F&MIL. They didn't know about inflation and what it could do to a fixed retirement income over 20+ years.
What should be a little scary to our northern neighbors (and here also) is in the US we have been experiencing 10-15 years of very mild inflation. Once our Fed's start to raise interest rates, that trend will stop. If our inflation does goes up, and the exchange rate gets worst, that will be a perfect storm for some with a fixed income.
