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by cure
3034 days ago
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From the FAQ: What is my retirements purchasing power today? Inflation is inevitable. If that word is new to you, it simply determines how much purchasing power your dollar has. Historically, inflation has always increased with time. In order to get a good understanding of the purchasing power of your future retirement savings for today, you can do a “simple” calculation: Take your total retirement savings and multiply it by 3%. For example, if you have $1.25m (retirement savings), multiplied by 0.03% (inflation), you get $45,000 in inflation. Then you subtract that number from your total savings: $1.25m - $45k = $880k. This will give you a baseline to understand your financial situation. I don't even.... What !? There are so many things wrong with that calculation. |
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It actually says that the rate of inflation always increases with time, which is... not true! Even if it's trying to say, clumsily, that there has been inflation every year historically... that's also not true. There has been periods of deflation, historically
https://en.wikipedia.org/wiki/Deflation#Historical_examples