Inflation
Prices rising over time, which shrinks what money buys.
Where it is explained in full
Inflation: the quiet subtraction. A number that grows can still buy less. Real return is what you earned minus what prices did, and the arithmetic is slightly less obvious than subtraction.
Compounding, and why the early years look boring. Growth on growth. The arithmetic is simple, the patience it asks for is not, and the usual illustrations hide a few assumptions worth naming out loud.
Workplace plans: the 401(k), the 403(b), and the TSP, from the first paycheck to the last. Everything a person needs to open one, fill it, hold the right things in it, avoid the traps, and carry it with them when they leave. Long on purpose, so that one page is enough.
Bonds and Treasuries: lending money, with a price that moves. A bond is a loan you make. The interest is fixed, the price is not, and the relationship between the two confuses nearly everyone the first time.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Treasury Inflation Protected Securities
Treasury Inflation Protected Securities, or TIPS, are bonds sold by the United States government where the amount you are owed automatically increases when prices across the economy rise over time. This protects your savings from losing purchasing power as everyday goods become more expensive.
Ask about Inflation
A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.