1 min readJul 10, 2018
Hi Nicolò good question! In terms of the contributions this calculation has monthly contributions increasing for inflation each year. In terms of the impacts of inflation on what a million dollars can buy you, no doubt a million bucks in several decades isn’t going to be worth what a million bucks is today.
BUT if you assume rather than a 7% total return, your investments average 7% above inflation then the math works out the same to arrive at a present value of $1 million by the time you reach 65.