Thread: How do people afford...
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Old 07-22-2009, 02:53 PM   #112 (permalink)
Alexus
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Originally Posted by GMZ View Post
Sorry but I just cant let this fly, not saying not to save but compound interest with the monetary system we have now is an illusion.

Compound interest huh? How about compound inflation? Will that $3M buy what it could at retirement as it did when the person started saving? No way!!

47 yrs ago a dollar went a long way, now not so much. Why? Weve had inflation almost EVERY year since the damn 30's that why.

Theres a huge difference between nominal returns (on paper) and real returns (purchasing power after inflation). Can I get some real deflation please!
Placing that $100 a month in a minimum rate, variable rate savings account will more than enough cover the inflation, with is around 1.5-2% a year. What's your point?
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