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Q » How does inflation affect the real return on savings and investments?
17 Oct, 2025
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A » Inflation erodes the purchasing power of money, decreasing the real return on savings and investments. If the inflation rate surpasses the nominal interest rate on savings, the real return becomes negative, meaning your money loses value over time. For investments, inflation can reduce future cash flows' value, impacting returns. Therefore, considering inflation is crucial for preserving and enhancing the real value of your financial assets.
17 Oct, 2025
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