We all know the depressing math. If you would have saved $10,000 20 years ago and if it returned an average rate of 8%, you'd be sitting on $46,609 today. Or would you? The answer is no.
The depressing answer is actually $18,061. How is this possible? Even though physically you would indeed have $46,609, you'd only have the buying power of today's amount of $18,061 and the reason is inflation. Assuming an average rate of 3.00% inflation, all the money you're saving loses that amount every year as well.