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.
Independent Financial Advisor
Stephan Strategic Director Joe Stephan, a Certified Financial Planner specialises in investment planning and risk management and insurance. With interests in client related communications and efficiency in provision of financial planning services, Joe has worked with both large institutional financial planning firms and smaller boutique practices which have provided a well rounded knowledge and expertise in various socio-economic groups.