FDs has
inflation risk i.e. FD rates will not be able to cope up with inflation.
FDs has
inflation risk i.e. FD rates will...
Not exact matches
The researchers estimate
risk score
inflation varies between 6 and 16 percent across MA plans, with the highest
risk scores being generated from the most integrated insurers (
i.e. physician owned).
Throughout the first ten years, the dividend investor's downside
risk is 5 % (
i.e., from a withdrawal rate of 4.0 % of his original balance plus
inflation to 3.8 % plus
inflation) for 4 years.
XCB are corporate bonds,
i.e. they have
risk with annual return 3 % while real
inflation is over 5 - 6 %, maybe more.
By excepting a higher return,
i.e., one that can keep up with
inflation, you do bear a higher level of
risk.
You have
inflation risk in the pension and you can hedge some of that with nominal debt,
i.e., a mortgage.