Real Rate of Return

Real Rate of Return

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Real Rate of Return

Real Rate of Return definition:  Real rate of return is a performance measure that accounts for annual inflation.  Nominal returns are most frequently quoted to consumers, but real rate of return more accurately reflects the true growth in savings or investment purchasing power. In periods of high inflation, the real rate of return of fixed income products can quickly be eroded.

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