This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Advice: Even Mild Inflation Should Scare You

Inflation and Your Retirement Plans

Tim McMahon of keeps track of these historical inflation statistics, with an amazing array of online charts and calculators. One calculator lets you figure out the total rate of price inflation between any two dates from 1914 to the present.

Perhaps the most useful feature of the site is a retirement inflation calculator. It allows you to calculate the impact of inflation on the spending power of your retirement dollars over the years.

Suppose you retired with $1 million at age 60 this year. Assuming that amount, conservatively invested, earned 5% annually, you would think it would be plenty to support you for the rest of your life.

Think again.

Just 25 years later, your assets would be worth only $359,245.36 in buying power. And since you could be depleting those assets over your lifetime, you might very well find yourself with little or no buying power as you live longer, and inflation continues, or increases as markets are now predicting.

We live in dollars, shop in dollars, invest in dollars, and retire in dollars. But we very rarely think about hedging our dollar bets -- something the rest of the world is doing in a dramatic way. They'd rather have euros, or gold, or corn and soybeans than hold on to U.S. dollars.

The U.S. Dollar and Global Prices

Foreigners recognize that the U.S. continues to go into debt, continues to create more "liquidity," and now is penalizing dollar-holders by keeping interest rates low, as the Federal Reserve struggles to keep the financial services sector alive and the economy from falling deeper into recession.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.79 0.17%
FB $94.12 -0.15%
GOOG $652.30 0.87%
TSLA $219.25 1.70%
YHOO $32.34 -1.58%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs