The U.S. government's Bureau of Labor statistics offers a useful tool free of charge: the inflation calculator. I use it constantly. I have for at least ten years.
I have created a short link: http://bit.ly/BLScalc
The calculator factors in changes in the consumer price index (CPI) in prices, beginning in 1913. That was the year before the Federal Reserve System started operations.
The Federal Reserve was officially created to guarantee price stability.
Test its performance. Type in 1000 in the beginning year box. Click CALCULATE. See how much money, after taxes, it would take to match $1,000 in 1913. (Note: there was no income tax in 1913.)
Very few financial journalists use this tool on a regular basis. How do I know? Because they discuss investment returns from stocks without factoring in price inflation and income tax payments.
If you have a 401(k) or IRA retirement account, pick the year you opened it. See what the dollar bought then compared to now. This will help you find out how well your portfolio has done.
Next, factor in income taxes owed when you cash it out.
Next, see what the after-tax annual income your portfolio would generate today if you were 60 years old and you started living on the dividends generated.
How is your portfolio working for you?
You say you don't want to know? You say this exercise would depress you?
Use it anyway.
Reality hurts.
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