Real vs Nominal Return

From the book — Chapter 7. The quick rule is return − inflation, and that’s close enough most days. The exact version divides them out: real = (1 + return) ÷ (1 + inflation) − 1. Either way, the lesson is the same — a 5% return with 3% inflation is really about 2% of new buying power, and a “safe” rate below inflation quietly loses ground.