Real after tax returns


  1. The problem with writing an article such as this is that you must quote, or at least use, government reported inflation figures. If you were to do a rough estimate of the true rate (read REAL rate) your analysis would be considered suspect.

    Luckily I don’t post articles for macro so I can use the real rate, which is about 8 or 10%. I base this on my electricity bills, rego, food, rent and other expenses. On that basis I would need a term deposit rate of at least 12% to feel I was parking my uncle’s inheritance wisely. But the banks have offered me only been around 6% so I exchanged the cash for gold coins and silver bars and coins, back in 2006.

    The bank of precious metals has returned around 200% over that time span. But don’t quote me on that. I have not bothered to work out an exact rate, I just watch their prices go up and up, year after year, as everything else goes down and down.

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