Your account says +5%. Your shopping basket says +3%.
Nominal return: the growth on paper, for example 5%.
Inflation: how fast prices rise, for example 2%.
Real return: about 3%.
€1,000 grows to €1,629 in 10 years. With 2% inflation, that buys what about €1,340 buys today.
Do you look at the real number or only the one on paper?
Education, not investment advice.
Read the sheet as text
Title: Nominal vs Real Returns
Highlight: Real Returns
Subtitle: Growth on paper, minus rising prices.
Frame title: Yearly Rates, for Example
Part 1: Nominal. growth you see on paper. 5%.
Part 2: Inflation. how fast prices rise. 2%.
Part 3: Real. more you can really buy. About 3%.
Example: For Example. €1,000 → €1,629 in 10 years at 5%. It buys what about €1,340 buys today.
Note: Exact: 1.05 ÷ 1.02 − 1 = 2.9%. Example rates, not a forecast.
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