Impact of Inflation

What is the Impact of Inflation

A simple way to see the effects of inflation is to look at postage stamps and the bills to which you attach them.

In 1980, it cost 15¢ to mail your monthly payment. Today, it costs you 37¢. The increase in postage alone is 147 percent. Add to that how much more you now send to the electric company, the cable company, etc.

Can you see the effects of inflation?

Just think what these things could cost in the year 2024…certainly much more than they do today. That’s why your money needs to grow just to break even. Clearly, inflation is a factor that must be considered when planning for retirement…

Example of price inflation

As you can see the money you have today will not be worth its today's value in the future. Inflation will eat away the value of your money. In order to preserve the value of your money, you need to make the return on your investment of at least the rate of inflation.