#fundrisepartner #fundrisetestimonial Inflation is eroding your wealth away. Here’s something you can do about it. #inflation #investor #assets…(read more)
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Inflation is a term that has become increasingly important in today’s economic landscape. It refers to the general increase in prices of goods and services over time, resulting in the decrease in the purchasing power of money. Unfortunately, many people fail to fully comprehend the detrimental effects of inflation on their wealth and fail to take necessary steps to protect themselves from its ravaging consequences. In this article, we will explore the ways in which inflation can destroy your wealth and discuss possible solutions to mitigate its impact.
First and foremost, inflation erodes the value of your hard-earned money. Let’s say you have $10,000 sitting in a savings account earning a meager interest rate of 1%. If the inflation rate is at 3%, the real value of your money at the end of the year would be $9,400. Essentially, you have lost purchasing power due to inflation. This is because the increasing prices of goods and services make your dollars less valuable over time, making it harder to maintain your standard of living.
Furthermore, inflation has a particularly negative effect on fixed-income individuals such as retirees. People who solely rely on pensions or fixed annuity payments often find themselves in a precarious situation when inflation rises. This is because these fixed payments fail to keep up with the increasing cost of living, causing a significant decline in their purchasing power. Retirees who may have budgeted for their post-work life suddenly find themselves struggling to make ends meet, forcing them to make difficult financial decisions or rely on others for assistance.
Moreover, inflation can have a detrimental impact on long-term investments. If you have money invested in stocks, bonds, or even real estate, inflation can erode the real returns and hinder the growth of your investments. While these assets may appreciate in value over time, their appreciation may not outpace the rate of inflation, resulting in a net loss of wealth. This can be particularly concerning for people saving for retirement or individuals who rely on their investment income to cover future expenses.
So, what can you do to protect your wealth from the clutches of inflation? Firstly, consider investing your money in assets that tend to perform well during inflationary periods. These include stocks of companies in sectors such as consumer staples, utilities, and natural resources, as they generally maintain their value even when inflation rises. Additionally, assets such as commodities and real estate have historically acted as a hedge against inflation.
Diversification is another key strategy to mitigate the impact of inflation. Spread your investments across various asset classes, regions, and sectors to reduce the vulnerability of your portfolio to inflationary pressures. This can help you capture growth opportunities while maintaining a certain level of protection against inflation.
Furthermore, consider investing in inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS). These government bonds adjust their principal value based on changes in the Consumer Price Index, ensuring that your investment keeps pace with inflation.
Lastly, continuously reassess your financial goals and strategies with the help of a professional financial advisor. They can guide you towards investment options and strategies tailored to fit your specific needs and protect your wealth from the perils of inflation.
In conclusion, inflation is a silent destroyer of wealth, silently eroding the value of your hard-earned money and jeopardizing your financial security. Understanding its consequences and taking proactive measures to safeguard your wealth is crucial in today’s economic climate. By diversifying your investments, considering assets that perform well during inflation, and seeking professional advice, you can shield your wealth from the detrimental effects of inflation and secure a brighter financial future.
Preston can't even describe inflation or purchasing power correctly. What a clown. He knows NOTHING but pushes Fundrise BECAUSE THEY PAY HIM.
That's not how inflation works, $100 is still (and always will be) $100. But the wages and prices were lower in 1913, which means having $100 would make you look rich then.
Fundrise is only available in the US. Are there any similar sites for those fortunate enough to live elsewhere?
how can I invest in this from outside the US
Hey… I need help to have a financial freedom.. I am currently going back to school but it is really not what I want…
$100 in 1913 is equivalent in purchasing power to about $2,952.48 today. That is alot of big macs
Yay.. yet another fucking app that is US only fuck sakes with these shits all I want to do is try them to see how it'd work out and yet "Hahaa fuck you European"
100% incorrect. A millionaire that doesn’t understand inflation? Yeah right….
That's not how money works Also where the h*** are you buying your big Macs from salt bay are they covered in gold
There has to be a catch to do this. It just seems waaaay too easy, and I am terribly risk-adverse (probably to my detriment).
But the problem with fundraise is this is for us citizen only but I live in another country
How could I invest?
A hundred dollars in 1913 would get you about 20 big mac's today because a big mac is about $5. I get that you are trying to say your purchasing power is eroded by inflation, but it's clear you don't understand how that happens. $100 in 1913 is still $100. Looking inversely at what could be bought for $100 however, we could say that we can buy about 25 loaves of bread now, when in 1913 you could buy about a thousand.
And while real-estate is a good investment, it's one that can lose you money too. Upkeep costs, mortgage payments, taxes, and most importantly, market conditions all play into the investment. If you try to write that off as a "hold it through downturns" then I feel you are utterly out of touch. You can't just hold through downturns if your money is entirely tied up in illiquid assets that you are paying money to hold. If you lose the ability to pay for them, you need to either sell at a loss or lose it entirely.
Yes absolutely invest in real estate when it's at the all time peak. Definitely take your investment advice from a guy who wears his hat backwards and provides no proof of his own supposed success.
$100 in 1913 is worth a lot more today. Also, he’s guaranteeing returns, which, if he’s getting paid for this, it’s illegal.