Posts in category Inflation →
“Real” and “nominal” interest rates
(This post is a part of the series on Basics of Finance and Investing.)
You have bought a 1-year CD for $10,000 at 5% interest rate. After one year you collect $10,500 – a gain of $500. What is your real gain? This depends on what $10,000 can buy one year later, compared to what it does now.
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Inflation and retirement
No matter how often they have been talked about, some threats are so creepy they are worth telling again. Inflation is dangerous not only because it damages your retirement savings, it works so quietly that you may not even notice, until after retiring when you begin to dip into your nest egg.
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Inflation bites harder on super-rich
The recent Forbes list
has some of the most expensive items, whose prices have increased from last year by an average 6%, more than double the CPI (standard measure of inflation). A few of the biggest rises are:
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