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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.39+1.3%Nov 19 3:59 PM EST

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To: Elroy who wrote (74573)11/12/2007 9:00:22 AM
From: Dinesh  Read Replies (1) of 77400
 
Right.

But don't forget the dividends, either. In 7 years, at 2% yield, that's a another 15% of return.

Many countries allow adjustment of cost basis for inflation. US is the most regressive in this regard. Even interest income is not allowed to be adjusted, even though everyone knows that expected inflation is a key component of interest rates.

Under such circumstances, how can one teach children the value of opening a savings account. By the third grade they are capable of doing all kinds of divisions and subtractions, and figure out that when that interest earned is reduced by first taxes and then inflation, the net effect of saving is a loss in purchasing power.

Regards
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