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General Investing: Inflation And Taxes

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Executive Summary

Inflation is a decline in the purchasing power of money. It's the main reason why a nickel won't get you in to see a movie anymore. The Consumer Price Index (CPI), the most popular measure for inflation, states the rise or decline (deflation) in costs as a yearly percentage. For your purchasing power to grow in "Real" terms, your investment returns must outpace inflation.

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