Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Why are "savings account" questions considered "Financial literacy" Maybe ask first : Do you have a savings account? IF you do stop here...the test is not for you...... we already know your Literacy
Most people don't appreciate how inflation alone erode the value over time. So it is important to have returns that exceed annual inflation rate just to stay afloat. Think about keeping cash in saving accounts that pay next to zero % interest!
For those who have access Financial Engines, it provides more detailed computation based on historical inflation rates (at least 40 years), returns of various asset classes, and expect outcomes of asset allocation one chooses.
Comments
Maybe ask first : Do you have a savings account? IF you do stop here...the test is not for you...... we already know your Literacy
observationsandnotes.blogspot.com/2013/04/what-will-1-be-worth-in-future.html
For those who have access Financial Engines, it provides more detailed computation based on historical inflation rates (at least 40 years), returns of various asset classes, and expect outcomes of asset allocation one chooses.