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He defended the choice as a good one because Pacific Standard, at the time, was offering a 12% return on money put into the plan.
Annual rate of return on money that can be invested or saved.
In particular, if you can credibly promise future inflation, that will make the real return on money negative.
Besides, the seemingly small return on money turned over to Social Security is partly an optical illusion.
"This is a good time to be focused on return of money, rather than return on money," Mr. Herrmann said.
For competitive economies in which the real rate of return on money is too low, the standard prescription is to engineer a deflation that is, to operate monetary policy according to the Friedman rule.
Similar(39)
The paltry returns on money market accounts have fallen even lower, dropping to less than 0.8percentt, on average, for the first time.
Authorities are looking for victims of an alleged fraud scheme that promised investors returns on money given to sponsor trips to China and Taiwan for prominent politicians.
"When you lose half your 401(k) you care more about the return of your money than return on your money," he says.
Offer them a decent 12-month return on their money and use the money to get started.
One such sales type representing Old Line Life hornswoggled Robbins, now 46, into buying something the guy called a "money accumulation plan" that promised an 8.2% return on his money.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com