TSX:AD.DB.A - Post by User
Comment by
Fannyman2883on Nov 21, 2022 6:32pm
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Post# 35117040
RE:RE:RE:RE:RE:RE:RE:RE:RE:Goods results
RE:RE:RE:RE:RE:RE:RE:RE:RE:Goods results True, but that's a good thing. Our health care system is crumbling.
SunsetGrill wrote: Neither of you have mentioned Justin,s 50% grab of a trust structure payment (if outside a registered account), of Alaris payments. Also, inflation is paid with after tax dollars.
TickerTwit wrote: You have $8 income in your example. If that $8 income remains constant, it loses 6.54% of its remaining buying power every year.
Your example indicates you intend to collapse the principal before you can no longer buy the original $100 of goods. You have less than five years to do so. At the end of the 5th year you have $140 and goods cost 140.26, and the gap in buying power grows exponentially afterward.
In my real life example, the principal is not to be touched because I want income for my (and my family's) entire future. Losing 6.54% of the income's buying power each year would be crushing after a few years.
But the occasional weak year is okay. If Alaris has one poor growth year among four good years, that would be fine over the long-term.
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mickeymouse wrote: If the inflation rate is 7% the goods that cost you $100 today will cost you $107 this time next year - If you take that $100 right now and invest it in Alaris you will receive $8 in dividends over the course of the year - so if your original $100 investment stays static for the year you would have $108 - the cost of whatever you are purchasing is $107 - your future purchasing power in a year will exceed the cost of the goods you are purchasing - if the yield on whatever investment you have exceeds the rate of inflation your purchasing power will increase corresponding to the differential in these two numbers