Money in a savings account stays the same (or even loses value if interest rates don't keep pace with inflation), whereas invested money has the potential to grow exponentially.
Cash doesn't keep pace with inflation.
Low interest, often don't keep pace with inflation.
Invest your retirement nest egg too conservatively at a young age, and you run the risk that the growth rate of your investments won't keep pace with inflation.
The science budget as a whole is up about $ 20 billion, but that increase probably won't keep pace with inflation, Pallava Bagla wrote Thursday at ScienceInsider.
Cash doesn't keep pace with inflation.
And now that our careers are going, we're looking at maxing out two traditional 401Ks and two Roth IRAs this year, and we see the Roth IRA portion as a small hedge against rising future tax rates (or what I think is a bit more likely to happen — tax brackets that don't keep pace with inflation, so keep sucking in more and more people to higher brackets).
«If you're
not keeping pace with inflation, you are losing money,» says Greg McBride, chief financial analyst at Bankrate.com.
Cash alternatives, such as money market funds, typically offer lower rates of return than longer - term equity or fixed - income securities and may
not keep pace with inflation over extended periods of time.
Your income might
not keep pace with inflation, but your capital should be safe.
The three main types of risk are inflation risk, which is the risk that your investment might
not keep pace with inflation; market risk which is the risk that a market may go down in value; And principal risk, which is the risk of losing money that you invest.
The biggest danger is that the return earned may
not keep pace with inflation, eroding purchasing power in real terms.
Despite the fact that many U.S. researchers face increasing competition in chasing after federal support that has
not kept pace with inflation (see the News special section on p. 24), private support is on the rise.
The biggest civilian science funders — the National Institutes of Health, the National Science Foundation, and the Department of Energy's Office of Science — would all get budget increases that would
not keep pace with inflation.
Funding for scientific research and development (R&D) in this country hasn't kept pace with inflation, Leshner says, and the sequester has only made matters worse.
David Cameron has promised a future Conservative government would protect England's schools budget in cash terms, but per pupil funding would
not keep pace with inflation.
Prior to today's decision in support of 21st Century education, E-rate funding had been capped 16 years ago at $ 2.25 billion a year, meaning that existing funding had
not kept pace with inflation.
These bonds are typically high - quality and very liquid, although yields may
not keep pace with inflation.
Because they're so safe, yields are generally the lowest available, and payments may
not keep pace with inflation.
In fact, many savings accounts do
not keep pace with inflation.
However, with so many new companies requiring degrees for jobs who never needed them before and with wages
not keeping pace with inflation, millions of Americans are unable to keep up with their debt payments and end up defaulting on their loans.
Also, many of the risk - free savings and investment options will
not keep pace with inflation, so it is essential for you to factor that into your equation.
However, they have a lower potential return than riskier investments and they may
not keep pace with inflation.
It is important to note that there is also risk in not being in the stock market — the risk of losing potential gains and your assets
not keeping pace with inflation.
Savings accounts cause you to lose money over time because their low interest rates do
not keep pace with inflation.
@ Parker, during the 1970s inflation, share prices did
not keep pace with inflation; some of the lowest PE10 ratios of the past century occurred in the late 1970s.
In response to a statement in the Legislature, statistics from 2004 - 2013 show that cost of living adjustments for compensation benefits have in fact
not kept pace with inflation — in real value they have shrunk by 9.6 %.
Not exact matches
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.
What's more, cash or liquid investments like money market funds or short - term CDs aren't likely to
keep pace with inflation in the long run.
You've heard it: the constantly reported observation that gold has
not come close to
keeping pace with inflation over the last 30 years.
And of course we know that incomes, particularly middle class incomes, have
not been
keeping pace with inflation.
However, a few things you need to be aware of is that the CPI might
not accurately match the general
inflation rate; so the principal balance on TIPS may
not keep pace with the actual rate of
inflation.
The PCs» Speech from the Throne clearly says that the government will
not invest in services at the rate of
inflation and population growth, meaning that again this year Albertans will see more and more services that don't
keep pace with the province's growth.
To fund the other (100 minus X) percent of your initial retirement spending, you will need a
nest egg of $ Y based on the assumption that this income also needs to
keep pace with inflation even though you won't need anywhere near that much over time.»
That would be a 1.2 % increase over 2014 levels, but would
not keep pace with the forecast
inflation rate of 1.7 % for 2015.
Advocates for biomedical research note that the small increase won't allow agency spending to
keep pace with inflation.
«This is all happening because the government is
not allowing school budgets to
keep pace with inflation.
Funding has
not kept pace with either
inflation or the growth in magnet schools, but neither has it withered away.
However, those increases are marginal, and did
not even
keep pace with inflation.
A portfolio solely allocated to fixed income may
not grow enough to
keep up
with the
pace of
inflation.
I would count on consuming dividends from stocks
with a reasonable degree of certainty that it will
keep pace with inflation (that's the long - term record, the double - digit increases of the recent past were
not sustainable anyway).
Savings accounts don't even
keep pace with inflation, meaning that an emergency fund is a money - losing proposition over the long term.
It mightn't earn much but you'd likely
keep pace with inflation.
Not at a great
pace, mind you, but at a 2 % to 3 % clip, enough to
keep pace with inflation.
Either way, even a 7 % return that at least partially
keeps pace with inflation when long bonds are yielding 4 % isn't such a bad deal, IMHO.
Many people aren't content to
keep pace with inflation; they want to beat it.
If you make the conservative assumption that your investments will just
keep pace with inflation during the years leading up to age 65, that means you will need an extra $ 50,000 in your
nest egg to cover every year earlier you retire.
The point is that it's
not necessary to rely solely on dividend - paying stocks to provide a cash flow that
keeps pace with inflation.
While your investment may post gains over time, it may actually be losing value if it does
not at least
keep pace with the rate of
inflation.
In 10 more years, even if the value of their home didn't increase at all over the entire 30 years of their mortgage (
not even
keeping pace with inflation — an unlikely scenario), they would at worst have a virtually free place to live and $ 250,000 in equity.