This week's blogpost - https://bahnsen.co/47RDUcM

Understanding Inflation: Beyond the Basics

In this episode of the Thoughts and Money Podcast, hosts Trevor Cummings and Blaine Carver delve into inflation, likening its effects to a treadmill, which constantly erodes purchasing power. Blaine shares insights from his recent Kansas City trip, using airport travelators as an analogy for inflation's constant presence. The discussion includes how inflation impacts investments, the importance of understanding real returns versus nominal returns, and effective strategies to combat inflation within portfolios. Trevor and Blaine also address common misconceptions about inflation, inflation's nuanced effects on everyday life, and the significance of expense-based planning. Notably, they emphasize the critical need for an investment strategy that can withstand inflation's long-term effects, drawing parallels to historical data showing stocks as an effective hedge against inflation. Throughout the episode, the hosts provide practical advice for retaining purchasing power and ensuring financial stability.

00:00 Welcome to the Thoughts and Money Podcast

00:13 Trevor's Kansas City Chiefs Trip

02:02 Inflation: The Silent Portfolio Killer

04:46 Understanding Nominal vs. Real Returns

05:08 The Impact of Inflation on Everyday Life

08:30 Strategies to Combat Inflation

15:26 The Role of Cash and Fixed Income in Portfolios

17:47 Convenience Costs and Subscription Services

19:38 Gold vs. Stocks: Inflation Hedges

20:35 The Wealth Gap and Investment Assets

21:51 Stocks as the Best Inflation Fighter

26:22 Balancing Stable and Growth Investments

28:23 The Rule of 72 and Personal Inflation

30:37 Generational Perspectives on Inflation

32:31 Final Thoughts on Inflation Awareness

Links mentioned in this episode: