Interest

steinson

What is the rate of growth called if I want my investment to be able to buy the same now as it will in 15 years time.

Dean000000

Inflation?

Jonbvn

steinson wrote: »

What is the rate of growth called if I want my investment to be able to buy the same now as it will in 15 years time.

I think you are referring to inflation.

It is usually either the Retail or Consumer Price Index (RPI/CPI)

[Deleted User]

Hi,

steinson wrote: »

What is the rate of growth called if I want my investment to be able to buy the same now as it will in 15 years time.

do you mean 'buy the same in 15 years as it does now'?


Here's a calc.

PRAISETHESUN

As above, you are referring to inflation which is a measure of the buying power of money - your investments would need to increase in line with CPI (consumer price index) in order to be able to buy the same amount as they do today.

eskbanker

steinson wrote: »

What is the rate of growth called if I want my investment to be able to buy the same now as it will in 15 years time.

Just to pick up on your thread title of 'Interest' but the use of 'investment' in the post itself - there is an important distinction between savings (capital-protected cash deposits that earn interest) and investments (a range of products including funds, equities, etc, where there is no capital protection or interest, but unit price fluctuation and dividend income).

In a nutshell, if you're looking at a 15 year period then it's highly unlikely that you'd find a way of receiving savings interest that would allow your capital to keep pace with inflation over that time, so if you're wanting money to retain its buying power over that sort of timeframe, you'd need to consider investment instead....