Since 1972, purchasing power has been seriously eroded by
inflation. As you can see from the chart, a stamp costs four
times as much today as it did in 1972...a half-gallon of milk,
almost five times as much...an average car, also almost five
times as much.
Even during relatively low inflationary periods your money
loses purchasing power.
We've included "playing it too safe" in our list
of common mistakes many investors make, because you can lose
purchasing power if your investment is growing at less than
the rate of inflation.
To grow, your return must exceed the inflation rate.
Inflation is one of the factors we consider when developing
your Personal Investment Plan.