The rate of return on an investment
after the effects of inflation have been removed.
There's opportunity lost by not investing those dollars in higher - potential opportunities as well as the tangible loss of growth and purchasing power
after the effects of inflation and taxes.
In viewing your chart in one of your other posts regarding the long term returns of long bonds when current yield is under 3 %, why would I want to diversify into almost certain loss,
after effects of inflation?
The figures come just days after a report from the Institute for Fiscal Studies (IFS) which showed that actual household income - what is left
after the effect of inflation is factored in - has fallen by 1.6 per cent over the three years to the end of 2011.
Not exact matches
«We think that the beneficial
effects of the supply - side stimulus, especially that begin to accumulate
after this year, take a lot
of pressure off
of inflation.»
After 11 months
of QE, the economy is growing more consistently, and I believe that once the
effect of the oil price decline drops out
of inflation figures next year, the annual rate
of inflation could move slightly above 1 %.
After factoring in the
effect of inflation, you are looking at what is probably the lowest price in history for a slave.
The new transport secretary, Patrick McLoughlin, announced shortly
after midnight that the west coast main line franchise competition process was cancelled because
of fundamental flaws — including the failure to allow for the
effect of inflation on revenue.
Ontario universities are feeling the pinch
after years
of sustained cuts in provincial operating budgets — cuts that, when combined with the
effects of inflation and the existing cap on increases in undergraduate tuition fees, have left the universities with little room to maneuver.
To see this
effect, consider that families in the second income group had a median EFC
of $ 3,059 in 1995 - 96,
after adjusting for
inflation.
Bear in mind that the portfolio may return an average
of a 7 % annually
after we substract the
effect of inflation (don't forget to consider the taxes you might have to pay on that), and that return would gradually diminish as you increase the proportion
of bonds.
After removing the
effect of fees and
inflation, you're left with about a 5 % - a-year return in real terms — and don't forget the taxman will take another bite out
of your returns, either immediately or when you remove money from your RRSP.
After 2002, Greenspan's rescue took
effect and the stock and housing market experienced a brief period
of asset
inflation, but the bottom eventually fell out in 2008 when the S&P 500 delivered a -37 % total return, which was followed by unprecedented monetary stimulus in the form
of Quantitative Easing.
When remaining wealth is considered in real terms
after removing the
effects of inflation, the situation is not as grim, as the 2000 retiree is in better shape than retirees in the late 1960s and early 1970s.
I have been investing for 30 years and have been through multiple bear markets, have no debt, and I do not have to access most
of my savings for a long time... but, I have more than enough in pensions and savings, and I do not need to take on very much risk to maintain the lifestyle I enjoy, even
after considering the
effects of inflation.
With the real returnReal return What you make on an investment
after you remove the
effect of inflation.
It is only
after a few years that I began to see the
effects of taxation and
inflation eat into one's savings.
«
After removing the
effect of inflation, prices rose almost as quickly in 2013 as they did in 2005 - 2006, the peak
of the boom.»