But a dollar in the future is worth less than a dollar today. That’s because real returns for high-quality bonds are negative. With the 10-year Treasury Bond yielding 1.33% as of September 3, 2021, and the Fed target for inflation at 2%, you will likely be able to buy less 10 years from now than more. This is especially true after paying taxes on the interest.
In Germany, the nominal rate is -0.37% annually as of September 3, 2021. In the U.S. and Europe, a dollar today is worth more (not less) than a dollar in the future. A positive real return comes as compensation for taking on more risk, not from the time value of money.