tailieunhanh - Project Management ROI A Step by Step Guide for Measuring the Impact and ROI for Projects_2

Tham khảo tài liệu 'project management roi a step by step guide for measuring the impact and roi for projects_2', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Ĩ4 Ị Inflation What s the Problem What will I do if my retirement or investment account loses significant value just before I need it or it doesn t generate a reasonable risk-adjusted return that s greater than inflation rates Table 2-1 shows the three types of capital and what the objectives are for each. It s useful to think of your cash assets as being in one of the following buckets An emergency fund in which the objective is to pay fixed expenses for a number of months if you lose your main source of income Savings accounts where the objective is to make a positive real rate of return with low or zero risk of losing value on funds you intend to use over the medium term say in the next few years Investment accounts where the objective is to generate a good risk-adjusted rate of return on capital that you do not need to use for a number of years in retirement for example Table 2-1. Types of capital and the objectives for each. Capital Risk Level Objective Emergency fund None Maintain purchasing power Savings Low Positive real rate of return Investments Medium Good risk-adjusted return Table 2-2 shows the typical implementation for each type of capital and what the problems associated with that implementation are. Table 2-2. The typical implementations of capital and the problems associated with each one. Capital Typical Implementation Problems in Implementation Emergency fund Checking account cash Treas- Diminished purchasing power ury inflation-protected securities due to inflation TIPS Savings Saving account money market Negative real rate of return due fund certificates of deposit to interest rates lower than infla- CDs tion single-currency volatility Investments Diversified equity and bond port- Poor or negative return unmanfolio with periodic rebalancing aged risk Protect Your Wealth from the Ravages of Inflation d The rest of this book is about how to deal with these specific problems. It will address each of them in turn. The remainder of this chapter .

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