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What rate of return beats inflation?

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asked Aug 2, 2015 in Investing by JLettermanMB (43,320 points)
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Ah, in the old days it was so easy to put money into a savings account or CD and get a better rate of return than inflation. These days, savers have to be careful as the actual value of their money might decline when it should rise! The good news for this year is that the 2015 projected inflation rate  ( http://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/) is only about 1/10 of one percent, so that's all you'd need to beat inflation. At the same time, 2015 CD rates are expected to rise, so that's good news.

With CDs, longer terms usually mean higher rates.. However, in 2011, for example, it was about 3.4 percent, so people are nervous about locking in lower rates now.

answered Aug 2, 2015 by bestie (4,000 points)
selected Aug 5, 2015 by JLettermanMB

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