What does “adjusted for inflation” mean and how are they related to investment portfolios?
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Inflation is the (gradual) increase of prices (or decrease in value of currency) over time. $1 in 1970 has the same face value as $1 in 2020, but can’t buy the same amount. So any system that tracks money/value over time, like an investment portfolio, will account for this.
Saying “adjusted for inflation” means they are converting all the money deposited/earned over time to a single time point, so you can see how well your investments are doing without the effects of inflation.
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