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Timestamps:
0:00 Is inflation here to stay?
0:33 Strategy #1 – Income Protected from Inflation
2:22 Strategy #2 – The Best Long-Term Hedge to Inflation
4:41 Strategy #3 – An Inflation Hedge as a Portfolio Diversifier
9:51 Strategy #4 – The Spending Strategy to Overcome Inflation
#Inflation #RetirementIncomePlanning #SafeguardWealthManagement
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HOW TO: Hedge Against Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation is a natural phenomenon in any economy. Prices rise, and the value of money declines. However, when inflation spikes, it becomes a significant concern, particularly for retirees who rely on fixed-income streams to fund their lifestyle. Here are four ways to beat inflation and protect your retirement in 2022.
1. Invest in stocks and bonds
Historically, stocks have proven to be an excellent way to stay ahead of inflation over the long term. Investing in a broad market index fund or a diversified portfolio of stocks can help retirees grow their wealth while keeping pace with inflation. Bonds, on the other hand, can provide stable income streams through interest payments, although they are more susceptible to inflation’s erosive effects.
2. Consider real estate
Real estate and other hard assets such as gold or commodities can be a good hedge against inflation. They tend to appreciate in value during times of inflationary pressure. Real estate provides both income and capital appreciation, primarily if you invest in rental properties. Investing in REITs (real estate investment trusts) is also an option for retirees looking for a more passive investment.
3. Invest in dividend-paying stocks
Stocks that pay dividends can be an attractive option for retirees who are looking for steady income. These stocks typically come from well-established companies with a stable history of profitability. As the company grows, so does the dividend amount paid to shareholders. Dividend-paying stocks provide a source of income that can keep up with inflation, making them an excellent option for those who rely primarily on their investment income for retirement.
4. Invest in annuities
An annuity is an investment product through an insurance company that provides a regular stream of income in exchange for a lump-sum investment. Annuities can offer a guaranteed income stream that provides protection against inflation. Customizable annuities that allow you to adjust your payments for inflation are available, providing added peace of mind.
Inflation can be a significant threat to retirement income, but it’s one that can be beaten by a combination of prudent investment practices and forward-thinking decision-making. The key is to diversify your investments and consider different asset classes that can offer some form of inflation protection. By doing so, you’ll be better equipped to protect your retirement income from the erosive effects of inflation.
This video seems to combine inflation and volatility hedging. If stocks are already known to be better at beating inflation, I wonder if some other non-correlated hedge would be better for volatility, such as a medium-term VIX ETF, at least shorter-term portions of a portfolio.
Yes, I was screaming at the video, but not with respect to I bonds. I have seen more than one analysis that strongly suggests a larger allocation to gold will further reduce the volatility of a portfolio. Granted, the total returns are somewhat lower, but the risk is much lower. Lower volatility of returns means you can plan better, with less chance of running out of money due to unexpected bear markets. Think outside the box and run your analysis with gold at 20% and 30% of the portfolio. I think it will surprise you.
Eric I really enjoy your style of confering this information. I'm wondering if you could do a video that Delaying SS to 70 isn't in the cards when your at 62 but still have 2 minor children at home thru to your 70th birthday. The children are eligible for SS checks if you claim at 62. I would love to see a video on this scenario because most older parents don't know about it.
Get a video for us peasants, with only 200k plus pension& ss
Nonsese! In January 1966 the Dow Jones was at 9,040. By June of 1982 it fell all the way 2,446. That is 16 years of drop. So if you invested in stocks in 1966, not only your money worn out by inflation, you lost a significant amount of your wealth. Now sure, if you have 40 years to invest, chances are, you'd come out ahead, but for the every day investor, this is a disaster,. Stock is the worst hedge against inflation and recession unless of course you are Warren Buffett who spends millions on research.
Excellent thank you!
I realize that the point of the 2 graphs at 1:42 is to show how when inflation is running at 5%, the breakeven point is even sooner when delaying SS distributions until 70. But I couldn't help but notice how drastically different the overall PORTFOLIO balance when inflation was running at 5% and how much harder it will be to make sure you don't outlive your investments.
8.6% is a government lie. Gasoline has risen 163 percent since Trump left office. I estimate that food at the grocery store is up at least 25%. Step one to fight inflation: Drill, baby, drill!
It can’t settle down if energy is tied to a war.. and supply chain can’t be fixed until you reskill and pay for transportation agents..
Current inflation is OWNED by Biden and the Dems. Not to get political, but this was very predictable and is NOT TRANSITORY. When you declare war on oil/gas the only thing that happens is that fuel prices shoot through the roof … AND … that impacts everything, because the price of diesel increases costs of trucking and rail. Worse yet, pumping all the stimulus money and infrastructure spending (which was spent on everything but) into peoples hands creates high demand for the goods already seeing prices rising due to fuel costs. Just look at any chart on the M2 Money Supply since Biden took office, its a straight line up. ALL OF THIS WAS AVOIDABLE!
So I'm one of the people screaming at the video. I like the idea of building an I-Bond ladder as hedge for savings in case we have persistent high inflation for years. $10k per each spouse, $10k under a trust. You can even gift your spouse another $10k (basically uses a future year annual limit for them). Yes it won't be liquid for a year, but I'm talking cash for things you are saving for longer term and don't want to put in the market