Inflation eats your investment growthFebruary 29th, 2012 by Dan Woodruff
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This post is part of a series on investment theory and philosophy.
Inflation and investment management
Inflation has an underestimated impact on investment returns over time. Often people focus on the actual rates of return without reflecting on the impact of the increase in the cost of living.
The above chart shows how returns can be adversely affected by inflation. While inflation is currently lower than historical averages, cash savings are currently losing money in real terms.
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