Re: General life questions / observations / random whatever thread
[ QUOTE ]
My return is above 5% but yes you do need to have a decent amount and inflation is an issue. I've had to top up investments as my rent increases. The principle is decreasing in real value but my goal is to have my fixed expenses covered so this doesn't matter.
[/ QUOTE ]
I guess it's not really THAT much of a problem - you just have to make that $2k from 3% return instead of 5%, then your original amount still increases with inflation.
If you earn > 5% doesn't that mean the extra is taken up by added risk or you just know something about that market that others don't?
|