Sentences with phrase «time because of inflation»

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.
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