C
Cara
— Keeps It Safe —
$100,000 in a savings account. Earns about 0.5% a year. She never touches it. The number on her statement barely changes — and she sleeps soundly.
An Almanac Exhibit
❦
Volume I, No. 5
The Inflation Eraser
Three savers. Same $100,000, untouched for thirty years. Three different vehicles. Watch the saver who feels the safest quietly lose almost half her wealth — without anyone stealing a single dollar.
I.
The Players
B
Brian
— The Patient One —
$100,000 in a portfolio of 10-year Treasuries, reinvested. Earns about 4.5% a year. Modest. Steady. Boring.
S
Sera
— Owns the Market —
$100,000 in the S&P 500, dividends reinvested. Earns about 9% a year on average. Volatile in any given year. Clear-eyed about the long run.
II.
The Stage
— Before You Watch · Place Your Bet —
Cara puts $100,000 in a savings account.
30 years later, she's never touched it. What does it actually buy?
30 years later, she's never touched it. What does it actually buy?
In today's-dollars purchasing power. Inflation averaged 2.6% per year. Pick a gut number — there's no penalty for being wrong.
Account Value by Year
|
NOMINAL $
|
$100,000 starting · 30 years untouched
Cara · Cash (0.5%)
Brian · Bonds (4.5%)
Sera · Stocks (9%)
Years elapsed
0
$1 in year 0 = $1.00 today
| Saver | Balance | Real (today's $) | vs. Start |
|---|---|---|---|
| Cara | $100,000 | $100,000 | — |
| Brian | $100,000 | $100,000 | — |
| Sera | $100,000 | $100,000 | — |
View
— The Verdict —
…
…
III.
The Reckoning
$100,000 Same starting amount. Three vehicles. Thirty years. The numbers in nominal dollars feel optimistic — until you ask what they actually buy.
| Saver | Vehicle | Nominal $ | Real $ | Real Δ vs Start |
|---|---|---|---|---|
| Cara | Cash savings · 0.5% nominal | — | — | — |
| Brian | 10-yr Treasuries · 4.5% nominal | — | — | — |
| Sera | S&P 500 · 9% nominal | — | — | — |