Sentences with phrase «premium over inflation»

A balanced portfolio should earn 4 % to 6 % over the next five years, meaning $ 100,000 invested today will accumulate to between $ 121,500 and $ 134,000, which is a meaningful premium over inflation and secure, cash - like instruments.

In the case of mortgages and car loans, the premium over inflation may be relatively modest.

In developed markets, the right to a certain return of capital is actually costing anywhere from — 1.5 % to — 0.5 % per year in real purchasing power.1 On the other hand, real yields in many of the larger emerging market economies reside solidly in positive territory — returning anywhere from about a 1 % premium over inflation in Mexico and Russia to more than 6 % in the case of Brazil.

In order for a lender to make a profit, that lender has to earn a premium over inflation.

Not exact matches

Other important assumptions not specified above are a $ 0.99 US / Cdn FX rate, a $ 4 / bbl diluent premium over light oil and a $ CDN 15 difference between the $ CDN - equivalent WTI price and WCS prices at Hardisty, both increasing with inflation, and transportation charges of $ 1 / bbl for diluent and $ 1.50 / bbl for dilbit to / from Hardisty.

(This rate is the difference between the yield on bonds that include an inflation risk premium and those on inflation protected bonds; once you «net out» the latter, what's left over is inflation expectations.)

Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a measure of inflation expectations over the life of the project and a premium to compensate for the investment's risk.

The payment of GST on insurance premiums has boosted those components of CPI inflation over the past year; the method of measurement based on premiums net of claims means that the recorded price of insurance in the CPI has increased by more than the GST rate.

But even if the returns to RSML end up amounting to no more than $ 20 million per annum, the total take will be in excess of $ 1 billion over the lifetime of the contract if increases in the levy merely tracks inflation in insurance premiums over the last decade.

From a lender's perspective, this meant the prospect of earning 2.1 percent over the rate of inflation — 10 times the inflation premium from the previous September.

To keep pace with inflation you need to make sure you can meet the premium increases over the years.

The Over 50s Increasing Life Insurance Plan is designed to help protect your cash sum against inflation, your premiums and cash sum are reviewed each year in line with the change in the Retail Prices Index (RPI).

This average return will earn you a small premium over the historical inflation rate.

The premium should be high enough to offset any expected changes in inflation over the life of a loan or bond.

Inflation protection riders can be purchased with a single premium, over a defined number of years, or over the life of the policy.

As always, one last point to remember is that one of the advantages of TIPS over nominal bonds is that you can take maturity risk with TIPS and earn the term premium without taking inflation risk.

Thus, while TIPS yields are at historically low levels, TIPS continue to look like a clear choice over nominal Treasuries in relative terms, because investors aren't paying a premium for unexpected inflation.

Inflation protection riders can be purchased with a single premium, over a defined number of years, or over the life of the policy.

Some stakeholders expressed the view that minimum increase in the premium rates should be the increase in cost inflation index (CII) over the year,» IRDA said.

Slowdown, inflation, weak investment sentiment and changed regulations for unit - linked insurance plans (ULIPs) since September 2010 have led to the first contraction in over 10 years in the premium collected by the life insurance industry.

If you factor in the inflation rate over 20 years, the premiums you get back will have less buying power than the same amount today.