Quote:
Originally Posted by Pgcacace
If you haven’t earned money in your investments, you haven’t lost it. Having a fixed income today is affected by inflation. Fortunately I was living below my means, so inflation is not affecting my lifestyle.
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I was referring to losing $6K per year in purchasing power, based on the higher prices due to inflation. So, if you invested $100K at 2 percent, you would have $102K in a year. But, if you were going to buy two cars for $100K and the price is now $108K, you can no longer afford them. That is what happens when the interest rate is lower than the inflation rate.
In my opinion, saving money should be rewarded, not punished.