Re:The Real Silicon Valley
by arbuge on Tuesday December 18, 2012 @08:31PM
(#4940727)
Hell no. You invest in a 1% CD, you get 1% absolute return, even if inflation is raging in the double digits.
Edit: I assume you mean that over time interest bearing account rates rise with inflation. That's true in general, but as the current situation shows, there's no guarantee they're actually even above the inflation level at any point.
Re:The Real Silicon Valley
by tcgv on Wednesday December 19, 2012 @07:03AM
(#4942209)
He means that if you keep spending all of your investment's returns, you'll end up with a fixed income of $30K (1% of $3M) that, due to inflation, will have less purchasing power as the years go by.
Edit: I assume you mean that over time interest bearing account rates rise with inflation. That's true in general, but as the current situation shows, there's no guarantee they're actually even above the inflation level at any point.