A sustained increase in the general price level—often measured by a broad index such as the consumer price index (CPI).
Submitted by tom on
$3 million in savings buys roughly $5,000 per month or $60,000 per year in inflation adjusted income.
This is inflation adjusted fixed income rather than annuity-based income.
Click here for more on TIPS and inflation adjusted retirement income.
Submitted by tom on
A couple of articles in this week's issue of Barrons discuss the possibility of deflation.
Submitted by tom on
Barclays Bank recently announced the launch of two new retirement income products:
An interesting question and a rather extreme scenario I suppose.
As you indicate, the currency can suffer quite a bit of damage through either inflation or deflation.
I am not sure, however, how the contractual obligations would be affected in an insurance or annuity contract if the currency were replaced.
Submitted by tom on
During a recent talk on the risk of investing in equities and the myth that stocks are safe in the long-run, Bodie mentions the following:
