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Combining taxes and inflation together shows how difficult it can be to get ahead financially. Your real rate of return is what you make after taxes and inflation. It is generally agreed that a 3%-real rate of return is pretty good; of course, the higher, the better. The problem is many people are simply treading water. While bonds and guaranteed investments still can make sense in your portfolio, it's important to understand how they work and what the effect would be on your portfolio.
The interest rate
trap!!
By Jason A. DeJean
FCSI®, PFP®, CFP®, CPCA®, EPC®