An annuity for which the income benefit begins within a one year period after the payment of a single premium. A form of vesting where the employee has full and immediate rights to all the money in the retirement plan. A type of retirement plan established in 1974 by Congress to encourage people to save towards their retirement. The IRA contribution may be tax deductible. The effect of generally rising prices of goods and services.
Inflation is an important factor to consider in evaluating investment alternatives.
See Example of the effects of inflation on an investment. A form of investment risk that measures the effect of inflation on an investment. If the after-tax return on an investment is lower than the rate of inflation, the investor will have less purchasing power at the maturity of the investment. Also see inflation . Generally the illustration begins with the current year and shows the values over the next 20 years.