← Glossary

Nominal vs. real

A nominal projection shows the actual dollar figure your balance is projected to reach; a real, inflation-adjusted projection divides that figure by cumulative inflation, showing what it's worth in today's purchasing power. The nominal number is always the larger of the two whenever inflation is positive — the real figure is the more useful one for judging what the money will actually buy.

This explains what nominal vs. real measures. It isn't investment advice — see the disclaimer.