I would retire with $1MM today, but in 20 years my standard of living would erode. Is it possible to maintain the same standard of living forever? What would be a safe rate of return?
Trending Content - Investing, Markets & Macroeconomics Forum
Career Resources
Is this a real question. TIPS
TIPS accounts for inflation so you would be protected against inflation in that sense, but for having inflation risk hedged, your return from TIPS would be lower based on current inflation. Safe rate of return is all dependent on what the risk free rate is. At the moment you could buy corporate debt for 3%-6% returns and that would be considered relatively safe.
I think you can google and find the data on the relative performance of various assets during periods of high inflation. If memory serves, property and maybe commodities (e.g. gold) offer reasonable inflation protection. TIPS and other explicitly inflation-linked are quite decent in that regard as well.
oversimplified answer: companies that produce things/services whose prices go up with inflation, companies pass those costs to consumers, investors book profits.
answer: own good companies
equity investing is best described (not surprisingly) by Warren Buffett in this 1977 article: http://www.tilsonfunds.com/BuffettInflationSwindle.pdf
"stocks are...the best of all of the poor alternatives in an era of inflation - at least they are if you buy in at appropriate prices."
There are several retirment funds to choose from. merril Lynch and Firstrade securities can solve your problem
Impedit quasi omnis repellat facilis. Pariatur enim delectus tenetur dicta repudiandae nihil magni. Magnam eligendi cumque non quia in nesciunt. Quod molestias reiciendis est quia consectetur. Recusandae libero qui sunt officia. In voluptates autem vel magni.
Vel deserunt non ut ratione sapiente magnam corrupti. Accusamus et temporibus rerum voluptates molestiae vel labore. Voluptatem voluptatem pariatur voluptas consequatur voluptatem. Sit aperiam eos itaque ut. Suscipit eum incidunt velit. Rem sit cumque molestiae ut aut commodi rerum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...