Spend It All Today!
The real, risk-free rate of return is currently negative. Amazing! There is no reward for saving or postponing spending. In fact, if you wait, your spending power will be less tomorrow than it is today, in risk-free, real (i.e., inflation adjusted) terms.
It seems perverse, but, yes, on a risk adjusted basis, it does not pay to save your money. You should spend it all today to get the most consumption bang for your buck.
Posted on Fri, June 15, 2012
by Tim Moffit filed under