Inflation is to Your Investment Return What Taxes are to Your Paycheck.

Just as you need to deduct taxes from your paycheck to get your "real" take-home pay, you need to deduct the rate of inflation from your investment returns to get your "real" return. If your investments are growing at 6%, and inflation is running at 3.1%, then your "real" investment return is more like 2.9%. It's important to focus on "real returns" in a long-term investment strategy.

Get a reality check: When using the Plan Savings Calculator, your projected future balance is adjusted for a 3.5% inflation growth, so you'll see your potential account value in "today's dollars."