Alas, for years bond investors have been accepting rates that in many cases don't
even match inflation, and this represents one of the great investment challenges of our time.
Not exact matches
And there could
even be primordial gravitational waves that
match the
inflation of the universe.
That's
even before we get into the fact 2 %
inflation target is too low and doesn't
match any sustained historical record of prosperity in the last 60 years.
Looking at the Simp Auto Allocator (Simplified Automatic Allocator, available as a free download from my Yahoo Briefcase, username jwr19452000) and assuming 3 %
inflation, you can withdraw 6.2 % of your original balance (plus
inflation)
even if your cash management account only
matches the
inflation rate.
I found that the best allocation [using an increment of 10 %] is 20 % Stock A and 80 % Investment B.
Even without making any cash flow adjustments, the minimum withdrawal rate was 5.53 % of the original balance (plus adjustments to
match inflation).
Over time, price gains on gold should roughly
match the
inflation rate, which means all you're doing is preserving the spending power of your money — and maybe not
even that if you buy at the wrong time and once you figure in taxes.
He hopes that his dividend amount will increase enough to
match inflation or do
even better.
Even if an I Bond has a fixed rate of zero, the bond will always retain value by
matching the changes in
inflation.
So all the science agencies face the «normal» continuing resolution that provides no increase in funding, not
even to
match inflation.