When talking about protecting your assets from inflation, many of us automatically think about gold. 

While gold often manages to hold its value and to appreciate, it isn’t a perfect inflation hedge.

In this episode, Kris Dureau fills you in on ways you can protect your portfolio from inflation. Rather than gold, Kris shows you other assets that could end up performing better in today’s environment.

Kris discusses:

– Which assets protect your portfolio during inflation
– Ways inflation can impact retirees and pre-retirees 
– The sources of income that tend to increase faster than inflation
– The role of cryptocurrency when it comes to protecting your portfolio from inflation
– And more!

Resources:

Exploring Private Alternative Investments (Ep. 26)
The Investments Your Portfolio Might Be Missing (Ep. 41)

Connect with Kris Dureau:

Three Hats Financial  
Facebook: Three Hats Financial
LinkedIn: Kris Dureau
Book a call with Kris
Harbourfront Wealth Management…(read more)

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 serious threat to your portfolio’s value. It refers to the increase in the prices of goods and services over time, which means the purchasing power of your money decreases. Inflation can occur for various reasons, including an increase in the money supply, higher demand for goods and services, or a decrease in the supply of goods and services.

As an investor, you must protect your portfolio from inflation. To do that, you may consider the following strategies.

Invest in Inflation-Protected Securities

Inflation-protected securities, also known as TIPS (Treasury Inflation-Protected Securities), are bonds issued by the U.S. government that are designed to protect investors from inflation. These bonds adjust their principal value as the inflation rate changes, which means your investment returns keep pace with inflation.

Invest in Real Estate

Real estate is a popular investment for hedging against inflation. The value of real estate often increases over time, and you can benefit from rental income. Additionally, real estate investments are often affected by inflation indexes, which means rental income can adjust for inflation.

Invest in Gold

Gold is another common investment for protecting against inflation. Gold has long been a store of value, and its price often increases when inflation rates rise. However, investing in gold does come with risks, such as its volatile price movements.

Diversify Your Portfolio

A diversified portfolio can help manage risks associated with inflation. By investing in a variety of assets, you can reduce the impact of inflation on your overall portfolio. For example, a portfolio that includes stocks, bonds, and real estate may protect you against inflationary periods in various sectors.

Invest for the Long Term

Investing for the long term can help protect against inflation. Over time, a well-diversified portfolio typically generates returns that can offset the effects of inflation. Additionally, investing for the long term often provides an opportunity to benefit from compound interest.

Final Thoughts

Inflation can negatively impact your investments and decrease the value of your portfolio. While no investment strategy can guarantee protection against inflation, smart investors can implement strategies like investing in inflation-protected securities, real estate, gold, diversification, and long-term investing that can potentially help offset the impact of inflation. As always, it’s essential to do your research and consult with a financial advisor before making any investment decisions.