A loaf of Bread cost 54c in 80’s. Now this Tip Top cost me over $3. An increase of 5 times the cost. I call Inflation a ‘Silent Killer’ as it quietly and slowly erodes the purchasing power of the money we have saved.
A $200,000 portfolio over 20 years will lose $33,000 from this silent killer.
- Take a 3% – Return on Cash
- Deduct 30% in tax and you are left with 2.1%
- Take CPI of 3% and you have a return of -0.9%
So if you hear friends or family suggest ‘I’d rather have money under the mattress’ or ‘my Super returns have been awful and I will leave my super in cash’ they may need a gentle push to see a financial adviser. We can assist them in becoming more confident with the concept of growth investing to combat the rising cost of living.