For one, the value of your savings could diminish over
time because of inflation.
Not exact matches
The news is discouraging
because it presents the second consecutive year
of 5 % - plus healthcare spending
inflation after a period
of time when spending growth appeared to be hitting historic lows.
Because PE is a measure
of earnings over
time, you can think
of it as representing the number
of years required to pay back a stock's purchase price (ignoring
inflation, earnings growth and the
time value
of money).
You need to add
inflation (and investment return)
because compounding interest will make a huge difference at
time of withdrawal How do you save for your kids to go to college?
If you've been on the site for awhile, you have a head start
because we've already discussed the importance
of a discipline known as asset allocation, which involves selecting among different asset classes to build a well - balanced portfolio that can weather different economic environments, tax regimes, global conditions,
inflation or deflation, and a host
of other variables that history has shown will fluctuate over
time.
I use
inflation for the advanced countries
because global
inflation data are always affected by a small number
of countries that from
time to
time have very high
inflation or hyperinflation.
The central bank says it held off this
time in part
because it expects the recent strength
of the Canadian dollar to slow the rise in the pace
of inflation.
This is
because interest rate changes have their largest effect on
inflation risk, while stronger macroprudential settings will lead to a higher quality
of household indebtedness over
time.
Because inflation will probably erode the value
of the dollar — and pump up your paycheck — a fixed - rate loan should get easier to repay over
time.
That's
because inflation was constantly eroding the value
of each dollar over
time regardless
of the investment vehicle.
Because we're neither wise enough nor foolish enough to know in advance how much
of our clients» initial spending is «core» (increasing with
inflation) and how much is «discretionary» (declining over
time), this is what we do at Cornerstone (see my February 2013 Journal column, «When an Ounce
of Discretion (ary) is Worth a Pound
of Core»).
First,
because we are being economists, lets not forget taxees,
inflation, present & future value
of time.
When Congress increases the maximum Pell Grant faster than the rate
of inflation (which it tends to do over long periods
of time because college prices rise faster than
inflation) but does not make commensurate changes to the eligibility formula, more middle - income families qualify for a grant.
It is lower
because of the lower
inflation rate and the first
time it has been less than two percent.
I differ on this point as to the weight
of its contributing impact,
because this one -
time decrease in state funding for public education doesn't alter the fact that for the past 20 years in Texas, total annual public education funding from all sources — local, state, and federal — has increased by almost twice the sum
of inflation and enrollment growth over that period, even after an adjustment for the growth in special education students.
Doug Keillor, executive director
of MTI, said it's not surprising many teachers unions have decided not to seek certification
because elections are expensive,
time consuming and the outcome is an ability to bargain only over base wages, which are tied to
inflation.
These investments are preferred
because they offer the potential to outpace
inflation over long periods
of time; this protects the purchasing power
of the investor.
Because inflation will probably erode the value
of the dollar — and pump up your paycheck — a fixed - rate loan should get easier to repay over
time.
In practice, this is not so easy to see
because periods
of inflation are also often bad
times for the economy so the value
of assets tends to go down.
The appeal
of things like gold and bitcoin may stem from the idea that they are
inflation - proof
because they're not controlled by some other party that could produce more quantities
of each at any given
time.
Because interest rates on savings accounts rarely (if ever) match the rate
of inflation, by simply placing money in an account, it will actually lose value over
time.
In its scheduled announcement, the central bank says it held off this
time in part
because it expects the recent strength
of the Canadian dollar to slow the rise in the pace
of inflation.
Because the value
of money erodes over
time as
inflation drives prices higher and pushes down the purchasing power
of your dollars.
You might say the
time value
of money is greater than the
inflation adjustment,
because you should be able to invest money in a way that provides an investment return greater than the rate
of inflation.
This does in fact make sense in a
time of inflation,
because the dollars used to pay back the principal amount borrowed are worth less and less.
Furthermore, as the underlying properties
of the REITs increases in value, so does their rentals and distributions; so you don't need not be concerned about
inflation because your passive income will steadily increase over
time.
I'm even more suspicious
of the «unexpected
inflation» betas here,
because the authors had insufficient data to calculate «unexpected
inflation» for all these different regions and
time periods.
Therefore, if the person in the above example obtains their passive income from a perpetuity, there will be a
time when they lose their financial independence
because of inflation.»
And
because of this weakness, the Fed was forced to downgrade its core
inflation forecast for 2017 yet again, this
time from +1.7 % to +1.5 %.
That's
because inflation was constantly eroding the value
of each dollar over
time regardless
of the investment vehicle.
Simple, if your payments are fixed, they don't increase over
time, and
inflation increases the price
of products and services
because the value
of money is reduced.
So the sound premise it's a good idea to buy a house this year
because it will probably cost more next year and you're going to want a home and the fact that you can finance it gets distorted over
time if housing prices are going up 10 % a year and
inflation is a couple
of percent a year.
In an economic environment with steady monetary
inflation, taking out a long - term loan backed by a tangible non-depreciating «permanent» asset (e.g. real estate) is in practice a form
of investing not borrowing,
because over
time the monetary value
of the asset will increase in line with
inflation, but the size
of the loan remains constant in money terms.
-- Four
of the 5 were
because there was very high
inflation early and it stayed high a long
time.
Because during
times of high
inflation, you will have a larger than normal income stream funded by underlying rents that can be increased to keep up with
inflation.
Because, honestly, if you are looking to build wealth over
time, it's not going to happen when you leave your money sitting in a «high - yield» savings account, unable to even overcome the risk
of inflation.
Cash (savings accounts, money market funds, and CDs) most always lose real value over
time because of the combined effect
of taxes and
inflation.
Because of inflation in the 1970s and more stringent safety regulation on nuclear power plants placed shortly before and after the Three - Mile Island accident in 1979, US nuclear plant construction
times increased from around 7 yr in 1971 to 12 yr in 1980.
This is
because of the
time value
of money and the negative eroding effects
of inflation over a period
of time.
Because of depreciation and
inflation, the replacement cost
of your home will increase over
time, while the actual cash value tends to go down.
However, even this turns into a larger net loss in buying power for the custodial parent
because of inflation during the same
time period...» [Presumption
of joint custody] legislation increased the number
of motions to modify or enforce parenting
time or child custody... the number did increase significantly (and almost doubled) following enactment
of the statute.
Until such
time, rent growth should only slightly outpace
inflation, partially
because many leases often come with inflationary clauses that cause nominal asking rents to increase by some commonly - used measure
of inflation, typically CPI.
The
timing of inflows is important
because the sooner they're received, the more valuable they are (
because of inflation and the potential returns that could be earned elsewhere).
Since that
time, there has been much discussion
of further increases, but there has not yet been one
because of mixed signals on the strength
of the economy and the
inflation outlook.