Sentences with phrase «because inflation increases»

Because inflation increases the costs of goods and services, it's possible that your purchasing power will suffer in retirement — even if the inflation rate is low.

Not exact matches

Customers grudgingly accept price increases that consistently exceed inflation partly because service has substantially improved, but also because they have no other good choice.

Most of the CEOs think Canada's inflation rate will be lower because domestic spending, along with our money supply, are not keeping pace with the rate of U.S. increases.

There are some signs that inflation could come out of hiding in the next 18 months, but I would be very surprised if we saw a substantial increase in long rates in the coming couple of years just because there are too many disinflationary macro headwinds.

Nevertheless, I am not unduly worried because the magnitude of these declines has been modest, and because the New York Fed's three - year - ahead inflation measure has been gradually increasing since January and has reversed much of the decline observed in the second half of 2015.

Investors are likely skittish because the prospect of increased inflation may force the Fed to raise interest rates faster than expected.

In my experience, a dividend growth portfolio strategy seems to be performing better as an investment than owning a home, in my honest opinion, I would rather rent in a great area than own a home in that area, jeez if I were able to get a lease agreement for 10 years indexed at inflation or at 2.5 % increase annually I would take it and take my down payment and invest it in my portfolio, and continue to contribute the max in my 401K, HSA, and Roth IRA, while enjoying living in a low tax bracket because of my contributions.

To some extent, this shift has been possible because of the increased credibility of the inflation - targeting central banks.

In the 150 years since Confederation, the average income per person in Canada has increased about 20-fold after adjusting for inflation — all because we have adopted better ways of doing business.

I live in a low almost deflationary enviroment (Europe) and was checking out some retirement software and something keep throwing me off, took me a bit to figure it out but it was inflation, like WTF is that and then I remembered I lived in Spain during the housing bust and now in Germany with negative real interest rates and I'm simply not used the idea that prices increase each year simply because time goes by.

This is because of increased media as Drew previously discussed and media inflation in the upper single - digit range along with normalized incentive compensation levels.

Euro zone inflation eased in June because of more moderate energy price rises, but the slowdown was less than expected by markets and the core measure of price growth the ECB keenly watches increased by more than anticipated.

Having a portion of your portfolio in intermediate TIPs may provide an extra hedge against the risk of rapid inflation increases, exactly because such increases are currently unexpected.

There are also tax considerations to keep in mind: When TIPS» principal value is adjusted upward because of inflation, the IRS considers the increase to be taxable income.

During 2001 - 2004 and again since 2008, the Fed felt free to encourage rapid increases in the supplies of money and credit because there were no obvious negative «price inflation» consequences to be seen by those who fixate on price indices such as the CPI.

But in the current situation, where nominal interest rates are constrained because they can't go below zero, a small increase in expected inflation could be helpful.

Say you adopt Guyton and Klinger's Decision Rules, but find that, for example, not increasing your drawdown by inflation because the portfolio value has decreased creates an issue with sums available, then an annuity steps in.

Because we're neither wise enough nor foolish enough to know in advance how much of our clients» initial spending is «core» (increasing with inflation) and how much is «discretionary» (declining over time), this is what we do at Cornerstone (see my February 2013 Journal column, «When an Ounce of Discretion (ary) is Worth a Pound of Core»).

This year it is 50M but it doesn't mean that last 2 years it 50M only... Every Prize Money and TV rights money gets increased because of Normal rete of Inflation in Economy....

the thing is no one really knows how much money we got to spend because like ken friar said we do nt want to increase transfer inflation rates.

Although if it happens too fast, it would increase inflation (because it would increase the amount of money in circulation without increasing the amount of goods and services in the economy).

The future strategic tanker aircraft has seen a # 336 million increase in cost because of fuel price inflation, but a failure to take advantage of opportunities to cut the overall bill on the Queen Elizabeth aircraft carrier was criticised by the public spending watchdog.

I am a candidate because the property tax controlled directly by the Town Board increased by an average of 6 % per year over the last decade — nearly triple the rate of inflation.

The state's chief administrative judge argued a pay raise consistent with federal district judges — who make $ 174,000 — would not be appropriate if not adjusted for inflation because federal judges have not had cost - of - living increases since 2009.

Osborne stressed that because of the higher - than - expected level of inflation in September, the child tax credit will still have increased by # 390 since the coalition came to power last May.

Pfau testified an increase consistent with federal district judges — who make $ 174,000 — would not be appropriate if not adjusted for inflation because federal judges have not had cost - of - living increases since 2009.

They demonstrate that neighbourhoods in the catchment of schools with more grade inflation experience a more pronounced increase in the number of grocery shops, restaurants and coffeehouses surrounding schools, most likely because local retailers respond to the arrival of richer homeowners.

When Congress increases the maximum Pell Grant faster than the rate of inflation (which it tends to do over long periods of time because college prices rise faster than inflation) but does not make commensurate changes to the eligibility formula, more middle - income families qualify for a grant.

I differ on this point as to the weight of its contributing impact, because this one - time decrease in state funding for public education doesn't alter the fact that for the past 20 years in Texas, total annual public education funding from all sources — local, state, and federal — has increased by almost twice the sum of inflation and enrollment growth over that period, even after an adjustment for the growth in special education students.

Because the applicable inflation factor was only one - tenth of one percent (0.1 %), in state fiscal year 2005 - 06, public school funding was increased by only 1.1 percent.

However, a district judge threw out the case in 2006, ruling that because the system complied with Amendment 23, which mandates that school funding increase every year by at least the rate of inflation, it was constitutional.

Comparing to 2008 tax brackets, we saw increases in all taxable income ranges, thanks to the inflation, because the federal taxable income levels are inflation adjusted each year, as shown in the following tables.

A $ 4 dividend now will not be worth much in 15 years because of inflation, so ideally the dividend increases should at least match -LSB-...]

They offer low - risk inflation protection because the bond's coupon payments increase with inflation, as measured by the Consumer Price Index.

These bonds guarantee to beat inflation because the principal is adjusted every six months according to the consumer price index, so if inflation occurs the principal amount increases.

TIPS are a nuisance in a taxable account because you must pay taxes on the increase in principal (the inflation adjustment) each year, not at maturity.

TIPS provide protection from inflation because the principal of a TIPS bond increases with inflation and decreases with deflation, as measured by the Consumer Price Index.

That said, I only expect modest increases in inflation and interest rates because I am sympathetic to the argument that both will be capped somewhat by structural forces, including technology, globalization, demographics, and high debt levels.

Stock investors must be able to share that belief and that forecast, because a change in longer - term inflation expectations - even from a low base - would increase stock market risks importantly.

Furthermore, as the underlying properties of the REITs increases in value, so does their rentals and distributions; so you don't need not be concerned about inflation because your passive income will steadily increase over time.

When inflation picks up, the floating - rate debenture will not increase its rate because the Prime Rate stays static until inflation catches up to that artificially high Prime Rate.

Faber said he is holding gold, cash and short - term bonds because inflation will increase as the U.S. government lowers interest rates to stave off an economic slowdown.

They think Long - bond yields (green line) will rise only because of increasing inflation (blue line), so that the yield of RRbonds (burgundy line) will stay steady.

This is because the strategy is exposed to sequence of returns risk — that is, it is indifferent to the capital markets, given that the annual spending amount is automatically increased by inflation regardless of whether the portfolio's market returns are positive or negative.»

These figures don't reflect any increases because of inflation.

According to Ranson, increases in the price of commodities are a better indicator of current inflation because inflation initially affects commodity prices, and it may take several years for this commodity inflation to work its way through an economy and be reflected in the CPI.

A $ 4 dividend now will not be worth much in 15 years because of inflation, so ideally the dividend increases should at least match the inflation rate.

Simple, if your payments are fixed, they don't increase over time, and inflation increases the price of products and services because the value of money is reduced.

If, for example, the financial markets go into a deep slump or your nest egg's value takes a hit because you make an unusually large withdrawal to handle a large unanticipated expense, you might need to forgo an inflation increase or even reduce the amount you withdraw for a few years to give your portfolio a chance to recover.

However, in the aftermath of the U.S. housing bust, rent increases have been outpacing the inflation rate because of the significant rental demand.