Quote:
Originally Posted by MandoMan
Doesn’t that mean that with the current inflation, you will lose 4% in a year? Hardly a good investment.
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Oh, there are so many variables that go into that decision but I will say that a majority of investors will agree with your “hardly a good investment” stance but there are many investors that are extremely conservative when they reach certain stages of life or don’t invest in the stock market. For those investors, 4% can be “a good investment” (Interest rate of change * investment portfolio exceeds inflation rate of change * expenses).