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Inflation is your enemy-You've got to beat it to come out ahead.
Your future standard of living will be affected by increases in the cost of
living, also known as inflation. At 3.5% annual inflation, what costs
$1.00 today will cost $2.81 in 30 years. Stated differently, thirty years from
now $1.00 will only get you what 36 cents buys today.
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See what different inflation rates can do to
your purchasing power
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Enter an inflation rate (whole percent) |
%
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Enter a time period (whole years) |
years
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Based on what you specified:
- What costs $1.00 today will cost $1.05 5 years from now.
- 5 years from now $1.00 will get you what $0.95 buys today.
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Inflation Facts:
- Inflation means that it costs more to live as the years go by.
- In some years prices go down. That's called deflation. But over time,
experts agree you should expect inflation, not deflation.
- Future inflation rates are uncertain and will usually vary from year
to year, but it is reasonable to expect long-term inflation
to be 3.50%.
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*It is reasonable to use this inflation rate for long-term planning purposes.
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