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PR Newswire
07-11-2012, 03:38 PM
If you are rich but unable to maintain it such as loss of high income or due to asset passed down from parents, inflation will hit you harder in terms of wealth.
A person who has $1M at 3% inflation will lose $30K in a year.
B person who has $100K at 3% inflation will only lose $3K in a year.
"A" person needs to earn alot more to maintain his wealth.
If he is the sort that has normal earning like "B" person, their gap will close. Maybe after 20 years of compound inflation,
"A" will be in poorer category.
Cory
A person who has $1M at 3% inflation will lose $30K in a year.
B person who has $100K at 3% inflation will only lose $3K in a year.
"A" person needs to earn alot more to maintain his wealth.
If he is the sort that has normal earning like "B" person, their gap will close. Maybe after 20 years of compound inflation,
"A" will be in poorer category.
Cory