Inflation

Inflation, although currently low, can have a severe effect on retirement assets. Even at the relatively low level of 2%, the purchasing power of a dollar is reduced by close to 40% over a 20-year span.

 

What does $1,000 today, buy in...

Ratio 1% 2% 4%
20 Years $820 $673 $456
30 Years $742 $552 $308